INCOME TAX ACT, 1961

Sections 147 & 148

Reassessment - Notice issued under section 148 in name of deceased person - Validity -

The applicant was the legal heir of assessee who left for his heavenly on 20-6-2011. A notice under section 148 for re-opening of assessment was issued in name of deceased assessee on 31-3-2017. Proceeding under section 143(3) read with section 147 finalized on 2-11-2017 in name of deceased. Notice under section 142 was served upon legal heir being grandson of deceased. Death of assessee was duly brought to notice of AO. Even thereafter, said proceeding under section 147/148 was finalized in name of deceased person which was further confirmed by CIT(A). Hence, this appeal. Held: Factum of death of assessee on 20-6-2011 was already in the knowledge of AO. It was the revenue who was to take proper step while issuing notice under section 147 instead it was finalized in name of deceased. Thus, notice under section 148 in name of deceased was invalid and proceeding was, therefore, void ab initio and quashed.

Relied:Rajesh G. Shah (L/H of Late Smt. Sarojben G. Shah) v. ITO [ITA No. 2232/Ahd/2018, dt. 9-7-2021] and Savita Kapila, Legal Heir of Late Shri Mohinder Paul Kapila v. Asstt. CIT (2020) 118 taxmann.com 46 (Delhi) : 2020 TaxPub(DT) 2938 (Del-HC)

REFERRED : Pr. CIT, New Delhi v. Maruti Suzuki India Limited (2019) 416 ITR 613 (SC) : 2019 TaxPub(DT) 4931 (SC), Urmilaben Anirudhhasinhji Jadeja v. ITO (2020) 420 ITR 226 (Gujarat) : 2019 TaxPub(DT) 6368 (Guj-HC), Chandreshbhai Jayantibhai Patel v. ITO (2019) 413 ITR 276 (Gujarat) : 2019 TaxPub(DT) 0496 (Guj-HC) and Alamelu Veerappan v. ITO (2018) 95 taxmann.com 155 (Mad) : (2018) 257 Taxman 72 (Mad.) : 2018 TaxPub(DT) 3564 (Mad-HC)

FAVOUR : In assessee's favour

A.Y. : 2010-11

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