Facts of the Case

The petitioner, Maya Devi Khowal, being the legal heir and wife of the deceased assessee Late Mr. Mohinder Kumar, challenged the assessment order dated 29.03.2023 for Assessment Year 2018–19.

The primary contention was that despite informing the Income Tax Department about the death of the assessee (who expired on 10.12.2017), the assessment order was still passed in the name of the deceased.

  • Obtained a surviving member certificate dated 19.11.2018
  • Communicated the death to authorities on 04.04.2022
  • Uploaded the death certificate on the official portal on 01.08.2022

Issues Involved

  1. Whether an assessment order passed in the name of a deceased assessee is valid in law.
  2. Whether failure of the legal heir to promptly inform the department affects the legality of such assessment.
  3. Whether reassessment proceedings under Section 148A(b) of the Income Tax Act, 1961 can continue without properly addressing the legal heir.

Petitioner’s Arguments

  • The assessment order is void ab initio as it was passed in the name of a deceased person.
  • The Income Tax Department was duly informed about the death of the assessee.
  • Necessary documents, including the death certificate, were submitted through proper channels.
  • Proceedings conducted against a dead person violate principles of natural justice. 

Respondent’s Arguments

  • The petitioner failed to inform the department within a reasonable time regarding the death of the assessee.
  • The delay on part of the petitioner contributed to the continuation of proceedings in the name of the deceased.

Court’s Findings / Order

The assessment order dated 29.03.2023 passed in the name of the deceased assessee is liable to be set aside.

  • Interests of both parties can be balanced by granting liberty to the Assessing Officer to pass a fresh order.
  • The fresh order must consider the reply of the petitioner to the notice issued under Section 148A(b).

Directions Issued:

  • Petitioner is allowed to file a reply within four weeks.
  • The Assessing Officer shall:
    • Provide a personal hearing
    • Issue proper notice with date and time
    • Pass a speaking order

Important Clarification

  • The Court emphasized that procedural lapses should not override substantive justice.
  • Even if there was delay in intimation by the legal heir, proceedings against a deceased person cannot be sustained.
  • The defect is curable by allowing fresh proceedings against the legal heir.

Sections Involved

  • Section 148A(b), Income Tax Act, 1961
  • Principles of Natural Justice

Link to download the order -https://delhihighcourt.nic.in/app/showFileJudgment/RAS25052023CW72672023_183122.pdf

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