Notice under section 148 issued to a deceased person is void; assessment founded on it is quashed.

Reopening notices under section 148 issued in the name of a deceased assessee are void for want of jurisdiction, and where the department knew of the death but did not issue a fresh notice to the legal heir as required by law, all consequential proceedings including assessment are vitiated. Participation by the legal heir in proceedings does not cure the jurisdictional defect. The impugned assessment and orders founded on the invalid notices are quashed and the appeal allowed.

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Issues: (i) Whether notice(s) under section 148 of the Income-tax Act, 1961 issued in the name of an assessee who had died prior to issuance are valid; (ii) Whether the assessment, consequential proceedings and the impugned order based on such notice(s) are sustainable when no fresh notice under section 148 was served on the legal heir despite knowledge of death.

Issue (i): Whether notice(s) dated 30.01.2018 and 30.03.2018 under section 148 of the Income-tax Act, 1961 issued in the name of the deceased assessee are valid.

Analysis: The proceedings show the original assessee died on 12.06.2017 and the department was informed by letter dated 28.02.2018 enclosing the death certificate before the second notice dated 30.03.2018 was issued. Authorities and High Court decisions cited in the record establish that a reopening notice under section 148 issued in the name of a dead person is unenforceable; section 159(2)(b) permits proceedings against legal heirs only where proceedings were initiated when the assessee was alive or where notice is properly directed to the legal representative. The record does not disclose service of fresh notice on the legal heir prior to the impugned assessment.

Conclusion: The notices under section 148 of the Income-tax Act, 1961 issued in the name of the deceased assessee are null and void.

Issue (ii): Whether the assessment and the impugned order founded on the invalid notice(s) are sustainable, noting that the legal heir participated in assessment proceedings before the assessing officer.

Analysis: Participation by the legal heir in assessment proceedings does not cure the jurisdictional defect where the department had knowledge of the death and failed to issue a fresh notice under section 148 to the legal heir as required by section 159(2)(b). The absence of valid notice vitiates all consequential proceedings based on that notice. The Tribunal relied on consistent High Court authorities holding that proceedings commenced by notice issued to a deceased person are not sustainable.

Conclusion: The assessment and all consequential orders and proceedings founded on the invalid notice(s) cannot be sustained; the impugned order is to be set aside in favour of the assessee.

Final Conclusion: The reopening notices issued in the name of the deceased being nullities and no fresh notice having been served on the legal heir, the assessment and the impugned order are quashed and the appeal is allowed.

Ratio Decidendi: A notice under section 148 of the Income-tax Act, 1961 issued in the name of a person who had already died is void for want of jurisdiction, and consequential proceedings based on such notice are unsustainable unless a valid notice is issued to the legal heir pursuant to section 159(2)(b) of the Income-tax Act, 1961.

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