Facts of the Case

  • The Petitioner is the legal heir of Late Amrit Singh Thapar, who passed away on 02.08.2020.
  • A notice dated 06.04.2021 under Section 148 was issued alleging escaped income for AY 2013–14.
  • The Petitioner’s mother informed the department about the death and submitted the death certificate via email on 30.04.2021.
  • Despite such intimation, further notices dated 25.11.2021 and 26.05.2022 (under Section 148A(b)) were issued in the name of the deceased.
  • The Petitioner challenged these notices before the Delhi High Court.

Issues Involved

  1. Whether reassessment notices issued under Section 148 in the name of a deceased assessee are valid in law.
  2. Whether subsequent proceedings under Section 148A can survive when the initial notice itself is invalid.
  3. Whether Revenue can rely on the Supreme Court judgment in Union of India vs Ashish Agarwal to justify such notices.

Petitioner’s Arguments

  • Notices issued against a dead person are void ab initio and unenforceable.
  • Section 148 mandates service of notice on a living assessee; hence compliance was impossible.
  • Relied on precedents:
    • Savita Kapila vs Assistant CIT (2020)
    • Mrs. Sripathi Subbaraya Manohara vs PCIT
    • Sangeeta Vig vs ITO
  • Argued that all consequential proceedings are liable to be quashed.

Respondent’s Arguments

  • Notices were issued in compliance with the Supreme Court ruling in Union of India vs Ashish Agarwal.
  • However, it was conceded that the said judgment does not address issuance of notices to deceased persons.

Court’s Findings / Order

  • The Court held that the issue is squarely covered by earlier Delhi High Court judgments declaring such notices invalid.
  • Notices issued under Sections 148 and 148A against a deceased person are null and void.
  • All consequential proceedings were set aside.
  • Liberty was granted to the Revenue to take steps in accordance with law, if permissible.

Important Clarification by Court

  • The Supreme Court ruling in Ashish Agarwal does not validate notices issued to deceased assessees.
  • Legal heirs cannot be burdened with proceedings initiated incorrectly against a dead person without proper substitution.

Link to download the order -https://delhihighcourt.nic.in/app/case_number_pdf/2022:DHC:2326-DB/JIS13062022CW94982022_174442.pdf

Blog Description (Meta Description)

Delhi High Court in Davinder Singh Thapar vs ACIT (2022) held that reassessment notices issued under Sections 147, 148 and 148A of the Income Tax Act in the name of a deceased assessee are void ab initio. The judgment reinforces precedents like Savita Kapila, Sangeeta Vig, and clarifies that Union of India vs Ashish Agarwal does not validate such defective notices, making all consequential proceedings unsustainable.