Reassessment notices sent to deceased taxpayer despite known death held invalid; s.159 reliance failed, orders quashed

Where reassessment notices and consequent orders were issued in the name of a deceased assessee despite the department's knowledge of the death, such proceedings were held void ab initio. Correspondence with the deceased's chartered accountant did not cure the defect, and reliance on s. 159 of the Income-tax Act failed because no notice was served on the legal representatives; they could not be deemed to have knowledge of notices addressed to a dead person. Consistent HC precedent treating notices/orders against a deceased as nullity was applied. The impugned notices and orders were quashed and set aside.

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The High Court of Bombay issued a judgment in a case where the petitioner sought various substantive reliefs through a writ petition under Article 226 of the Constitution of India. The petitioner requested the court to issue a Writ of Certiorari, Mandamus, and Prohibition to quash, cancel, and set aside the impugned notices and orders issued under the Income-tax Act against a deceased individual, Late Ahmed Gulamnabi Shaikh. The petitioner argued that despite informing the Income-tax Officer about Shaikh's demise, the notices and orders were still issued in his name. The respondent, representing the revenue, contended that since the notices were addressed to the chartered accountant and no intimation was received about the death, proceedings could continue against the legal representatives under Section 159 of the Income-tax Act.The court considered the submissions of both parties and analyzed the facts and legal precedents related to the issuance of notices and orders against deceased individuals. The court noted that the department had knowledge of Shaikh's demise by May 2018, as evidenced by the communication from Shaikh's son and the death certificate provided. Despite this knowledge, the impugned notices and orders were issued in Shaikh's name, which the court found unjustified.The court rejected the respondent's argument based on Section 159 of the Income-tax Act, stating that since no notices were issued to the legal representatives and the notices were addressed to the deceased person, the legal representatives could not be bound by them. Citing previous decisions, the court held that notices and orders against a deceased person are null and void. Therefore, the court granted the relief sought by the petitioner and quashed the impugned notices and orders.In its final determination, the court made the rule absolute in terms of the relief requested in prayer clause (a) of the petition, without imposing any costs. The court clarified that its judgment did not prevent the respondents from proceeding against the legal representatives in accordance with the law. Additionally, the court kept other contentions raised in the petition open for future consideration, as the judgment was based solely on the grounds that the impugned notices and orders were issued against a deceased individual.

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