TaxTMI 
TaxTMI 
2026 (6) TMI 1521
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....s of appeal filed on 07.08.2025 is as under: 5) In view of this, the assessment framed on a deceased person is bad in law and not legally sustainable. It has been judicially held that no proceedings shall be initiated after demise of a person until the legal heir of the assessee is brought to record. For proper initiation and completion of reassessment proceedings, the AO should have initiated the proceedings by bringing in legal heir of the assessee. 3. Brief facts of the case are that the assessee died on 09.07.2019.The notice u/s 148 and order u/s 148A(d) both dated 31.03.2024 has been issued by ITO, Ward 1(1), Salem. A copy of Notice u/s 148 and order u/s 148A(d) is enclosed in paper book page no 12 to 15.The ld.AR for the a....
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....the name of the dead person - the said Mr.S.Veerappan is enforceable in law and the subsidiary issue being as to whether the petitioner, being the wife of the said Mr.S.Veerappan, can be compelled to participate in the proceedings and respond to the impugned notice. The fact that the said Mr.S.Veerappan died on 26.1.2010 is not in dispute. If this fact is not disputed, then the notice issued in the name of the dead person is unenforceable in the eye of law. 15. The Department seeks to justify their stand by contending that they were not intimated about the death of the assessee, that the legal heirs did not take any steps to cancel the PAN registration in the name of the assessee and that therefore, the Department was justified in ....
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.... to immediately intimate the death of the assessee or take steps to cancel the PAN registration. 18. In such circumstances, the question would be as to whether Section 159 of the Act would get attracted. The answer to this question would be in the negative, as the proceedings under Section 159 of the Act can be invoked only if the proceedings have already been initiated when the assessee was alive and was permitted for the proceedings to be continued as against the legal heirs. The factual position in the instant case being otherwise, the provisions of Section 159 of the Act have no application. 19. The Revenue seeks to bring their case under Section 292 of the Act to state that the defect is a curable defect and on that ground, th....
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....r issuance of notice under Section 147/148 of the Act was 31.3.2015 and on 02.7.2015 when the notice was issued, the assessee was already dead and if the Department intended to proceed under Section 147 of the Act, it could have done so prior to 31.3.2015 by issuing the notice to the legal heirs of the deceased and beyond that date, it could not have proceeded in the matter even by issuing notice to the legal representatives of the assessee. The decision in Vipin Walia fully supports the case of the petitioner herein. 22. The decision in the case of Vipin Walia was followed in the decision of the High Court of Gujarat in the case of Rasid Lala, in which, the re-assessment proceedings were initiated against the dead person, that too....
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....e correct name and that the PAN mentioned was also incorrect. The factual background was taken into consideration and the Court held that errors and mistakes cannot and should not nullify the proceedings, which are otherwise valid and that no prejudice had been caused, as this being the mandate of Section 292B of the Act. The decision in the case of Sky Light Hospitality LLP is clearly distinguishable on facts and it does not support the case of the Revenue. 26. For all the above reasons, this court holds that the impugned notice is wholly without jurisdiction and cannot be enforced against the petitioner. 27. Accordingly, the writ petition is allowed as prayed for. No costs. Consequently, the connected WMP is closed. 6....
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....er continued against the legal representatives. Where the very initiation of proceedings is against a deceased person, section 159 has no application. 9. The Hon'ble High Court further held that the defect is not a procedural irregularity curable under section 292B of the Act but a jurisdictional defect going to the root of the matter, as no valid proceedings can be initiated against a dead person. Consequently, any notice issued in the name of a deceased person is void ab initio and all consequential proceedings founded thereon are liable to be quashed. 10. In the present case, admittedly, the assessee had expired on 09.07.2019, whereas the notice under section 148 and the order under section 148A(d) were issued only on 31.03.202....