INCOME TAX ACT, 1961

Section 147 Section 148 Section 159

Reassessment - Validity of notice under section 148 - Notice issued on dead person, AO having no information about death of assessee -

Assessee, namely, Navinchandra S Dalal (now deceased assessee) filed his return of income dated 28-3-2013 declaring total income at Rs. 64,570 which was processed under section 143(1). AO subsequently found that the sale consideration Rs. 1.34 crore shown by the assessee in the income tax return on the basis of sale deed was less than the value adopted for the purpose of for stamp duty amounting to Rs. 3,30,35,360. As a result the income of the assessee had escaped assessment. Thus the AO issued notice under section 148 upon the assessee dated 28-1-2015 assessee before the AO challenged the validity of the proceedings initiated under section 148 for various reasons. But the AO disregarded the contentions of the assessee and framed the assessment under section 147, in the name of legal representative namely D vide Order, dated 30-3-2016 determining the total income. However, the assessee first time before the CIT(A) contended that the notice under section 148, was issued in the name of the dead person. Therefore, the AO should have issued the fresh notice under section 148 in the name of the legal representatives. However, the CIT(A) disregarded the contention of the assessee. Held: The AO never had any clue about the death of the assessee as well as there was no intimation from the side of the legal representative of the assessee about such fact. Moreover, the assessee never challenged the validity of the proceedings under section 147 before the AO on the ground that the notice was issued upon the dead person. On perusal of the provision of clause (b) of sub-section 1 of section 149, the AO had available time of six years from the end of relevant assessment year, i.e., 31-3-2013 which ends as on 31-3-2019. Admittedly, the assessee died dated 3-11-2013 and the notice was issued upon him under section 148 dated 28-1-2015. The notice issued by the AO under section 148 of the Act cannot be held as invalid in view of the fact that the AO during the relevant time was unaware of such vital fact. AO cannot be faulted for issuing notice in the name of the deceased assessee under section 148 in the present given facts and circumstances.

Explaned:<./i>Chandreshbhai Jayantibhai Patel v. ITO (2019) 101 Taxmann.com 362 (Guj-HC) : 2019 TaxPub(DT) 496 (Guj-HC).