Reassessment proceedings against deceased assessee found jurisdictionally defective; reinitiation required after statutory formalities, petitioner may be treated as legal representative if unresponsive

Reassessment was initiated against a deceased assessee, creating a jurisdictional defect because notices were issued after death; the absence of timely corrective procedural steps requires setting aside such assessments and consequential notices and mandates reinitiation only after compliance with statutory formalities. Revenue lacked knowledge of death until later inquiry responses; where authorities request names of the deceased's legal representatives and heirs in writing and the petitioner fails to supply them within seven days, the authorities may proceed treating the petitioner as the legal representative, and such proceedings will not be open to challenge for nonimpleading other heirs. Writ petition disposed with these observations.

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Issues: Whether reassessment orders and consequential penalties passed under Sections 147 read with Sections 144 and 144B, Section 272A(1)(d) and Section 270A of the Income-tax Act, 1961 in respect of assessment year 2019-20 are liable to be set aside where proceedings were initiated and continued against a deceased person despite the department having been informed of the death.

Analysis: Notice under Section 148 was issued in the name of the deceased original assessee. The department received information of the death on December 28, 2023 by way of a response to a notice under Section 133(6). After receipt of that information, the reassessment proceedings and consequential penalty orders were continued and ultimately culminated in orders dated February 29, 2024, June 29, 2024 and July 3, 2024. The continuation of reassessment and penalty proceedings after the department had been informed of the death was considered without the requisite corrective measures or observance of appropriate statutory formalities. The petitioner's obligation to furnish names of legal representatives was addressed, and a direction was given permitting the department to treat the petitioner as legal representative if the petitioner fails to provide information after a written request.

Conclusion: The impugned reassessment order dated February 29, 2024 under Section 147 read with Sections 144 and 144B, the order dated June 29, 2024 under Section 272A(1)(d) and the order dated July 3, 2024 under Section 270A, together with consequential notices of demand for assessment year 2019-20, are set aside.

Ratio Decidendi: Continuation of reassessment and penalty proceedings after the tax authorities have been informed of the assessee's death, without taking required corrective or statutory steps, renders the resulting orders liable to be set aside.

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