INCOME TAX ACT, 1961

Section 148

Reassessment - Notice under section 148 - Notice under section 148 issued in favour of assessee, who was no longer alive on date of the notice -

Assessee sought to challenge the Notice issued by Revenue under section 148 in the name of the deceased assessee. It was submitted that as notice was issued in favour of the assessee, who was no longer alive on the date of the notice, it was non est. He further submits that Revenue was well aware of the death of the assessee as the income tax return on behalf of the assessee was filed by his LRs.Held: Revenue had not disputed the factum of death of the assessee prior to the issuance of the Notice. He, however, submitted that even if this Notice was set aside by this Court, Revenue still be entitled to issue a fresh notice to the LRs of the deceased assessee in accordance with law. In view of decision of High Court in Savita Kapila [W.P. (C) 3258 of 2020 : 2020 TaxPub(DT) 2938 (Del-HC)], the notice having been issued in favour of the assessee who was no longer alive, was set aside. This order, however, shall not bar the respondents from issuing a fresh notice for the concerned assessment year to the LRs of the deceased assessee in accordance with law.

followed:Savita Kapila, Legal Heir of Late Shri Mohinder Paul Kapila v. Asstt. CIT [W.P. (C) 3258 of 2020] : 2020 TaxPub(DT) 2938 (Del-HC).

REFERRED :

FAVOUR : Directions issued.

A.Y. : 2017-18

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