TaxTMI 
TaxTMI 
2026 (3) TMI 632
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.... received enhanced compensation and interest on acquisition of lands by the land acquisition officer and issued notice u/s.148 of the Act on the assessee who is a dead person. The AO completed the assessment u/s.147 r.w. 144 r.w. 144B of the Act determining the income of the assessee at Rs. 3,65,47,361/- by assessing the interest on enhanced compensation on the acquisition of lands, under the head income from other sources after issuing several notices. 4. The Ld. Counsel for the assessee submitted that there cannot be an assessment on a dead person and therefore, the assessment framed on a dead person is void ab initio. The Ld. Counsel for the assessee further submitted that the detailed submissions made before Ld. CIT(A) were completely ignored by the Ld. CIT(A) while disposing of the appeal and sustaining the addition. 5. On the other hand the Ld. DR relied on the order of the Ld. CIT(A) the Ld. DR further referring to page -9 para 6.1 of the Ld. CIT(A) order submitted that in response to notice issued u/s.148 of the Act a return was uploaded for current assessment year on 28.09.2020 declaring nil income. The Ld. CIT(A) sustained the addition since the legal heir of the as....
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.... order passed by Ld. Assessing Officer is bad in law and on facts as the order u/s 147 of Income Tax Act 1961 is being against a deceased person 2. That the Learned Assessing Officer has erred in law and on facts in completing the assessment breaching the concept of natural justice and without providing opportunity of being heard. 3. That the Learned Assessing Officer has erred in law and on facts in making an addition amounting to Rs. 3,65,47.361/- on account of interest income under Head "Other Sources on account of Interest Income on account of Compensation on Compulsory Acquisition of agricultural land, although being Exempt Income u/s 10(37) of the Income Tax Act 1961. 4. That the assessee reserves the right to amend delete, add. substitute, modify or alter any one or more of the grounds of appeal at the time of hearing." The submission on the above grounds of appeal is furnished hereinunder Ground No. 1: 3 3.1 This ground is against the initiation of proceedings u/s 147 of the Income Tax Act 1961 (the Act) and consequent assessment order made u/s 147 r.w.s. 144 read with section 144B of the Act dated 06.03.2024 for A.Y. 20....
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.... obligation on part of legal representative of deceased to immediately intimate death of assessee or take steps to cancel PAN registration - Held, yes [Para 17] {in favour of assessee]" (ii) In the case of Rasid Lala v. Income-tax Officer [2017] 77 taxmann.com 39 (Gujarat), the Hon'ble Gujarat High Court expressed the view that notice issued in the name of dead person was not valid. It was held as under "Section 148, read with section 159, of the Income-tax Act, 1961-Income escaping assessment Issue of notice (Dead person) - Assessment year 2009-10 Original assessee, namely, 'B' died on 2-12-2009 - After a period of six years, Assessing Officer issued a notice under section 148 in name of 'B' to reopen assessment for assessment year 2009-10 Thereupon petitioner-heir and legal representative of 'B' informed Assessing Officer that 'B' had already expired on 2-12-2009 and, therefore, notice in her name was not valid - Despite it. Assessing Officer relying upon section 159 informed petitioner to file return of income for assessment year 2009-10 and continued with reassessment proceedings against 'B' Whether even if section 1....
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....ame of 'JHP' to reopen assessment Thereupon petitioner being heir and legal representative of JHP informed Assessing Officer that 'JHP' had already expired and, therefore notice in his name was not valid He also enclosed death certificate of JHP Assessing Officer disposed of objections raised by petitioner stating that since original assessee's son-legal heir had received notice and replied to it, he had participated in proceedings and thus defect in issue of notice was automatically cured as per provisions of section 2928 Accordingly, Assessing Officer continued with reassessment proceedings against JHP Whether merely because in response to notice issued against JHP", petitioner had informed Assessing Officer about death of assessee and asked him to drop proceedings, it could not, by any stretch of imagination, be construed as petitioner having participated in proceedings and therefore, provisions of section 2928 would not be attracted Held, yes - Whether, therefore, impugned notice issued under section 148 was to be treated as invalid Held, yes [Paras 16, 18 and 19] [In favour of assessee) (V) The Hon'ble High Court of Bombay in the case of Sumit ....
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.... Whether in view of aforesaid legal position and, having regard to fact that impugned notice could not have been served upon assessee, same deserved to be quashed Held, yes (Paras 32, 41 and 42] (in favour of assessee] (vii) The Hon'ble Delhi High Court had an occasion to consider the similar issue in the case of Dharamraj V Income-Tax Officer [2022] 441 ITR 462 (Del) and observed that notice u/s 148 issued to deceased person was not valid It was held as under "Held, allowing the petition, that since the notice under section 148 was issued against a dead person (assessee) and therefore, null and void, all consequent proceedings and orders, including the assessment order passed under section 144 and all the subsequent notices issued were equally tainted and were set aside." 3.6 In view of the above, the impugned notice u/s 148 of the Income Tax Act issued in the name of deceased person is ab-initio void and invalid The impugned consequent assessment order u/s 147 r.w.s. 144 read with section 1448 of the Act dated 06.03.2024 was also passed in the name of the deceased person, which is not legally valid. Therefore, it is prayed that the impugned notice u....
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.... the facts before the Hon'ble Gujarat High Court were that the assessee expired on 02.12.2009 and after a period of six years the AO issued notice u/s.148 in the name of deceased assessee to reopen assessment for the A.Y. 2009-10. The legal heir of deceased assessee informed the AO that the assessee had already expired on 02.12.2009 and therefore, notice issued in the name of deceased assessee is not valid. Despite this fact the AO completed the assessment on the deceased assessee u/s.147 of the Act and in such circumstances the Hon'ble Gujarat High Court held that the AO is wrong in proceeding to complete the assessment on the deceased assessee. The Hon'ble Gujarat High Court held that the AO should have brought legal heir on record and should have issued notice u/s.148 of the Act on the legal heir of the deceased assessee. 11. The Hon'ble Delhi High Court in the case of Braham Prakash v. ITO (275 ITR 242) held that since the notice u/s.148 of the Act issued on a deceased assessee could not be served, the notice of demand u/s.22(1) and also the assessment order and the order of penalty were to be quashed. Similar view has been taken in the Chandreshbhai Jayantibhai Patel v. ITO....