Facts of the Case

The present writ petition was filed challenging a reassessment notice dated 24 June 2021 issued under Section 148 of the Income Tax Act, 1961 in the name of Late Shri Ram Avtar Bhageria for Assessment Year 2017–18.

The petitioner, being the legal heir of the deceased assessee, contended that the notice was issued after the death of the assessee and hence was invalid in law.

It was further established that:

  • The assessee had already passed away prior to issuance of notice.
  • The Income Tax Department was aware of the death since the income tax return had been filed by legal representatives earlier.
  • Death certificate was also placed on record to substantiate the claim.

Issues Involved

  1. Whether a reassessment notice under Section 148 issued in the name of a deceased person is legally valid?
  2. Whether such a notice can be sustained when the department had prior knowledge of the assessee’s death?
  3. Whether the department can issue a fresh notice to legal representatives after quashing such notice?

Petitioner’s Arguments

  • The notice issued in the name of a deceased assessee is non est in law and void.
  • Reliance was placed on the judgment in Savita Kapila v. ACIT, where similar notices were quashed.
  • The department was already aware of the death, as returns had been filed by legal heirs.
  • Therefore, issuance of notice showed lack of due application of mind and was legally unsustainable.

Respondent’s Arguments

  • The Revenue did not dispute the fact that the assessee had died prior to issuance of the notice.
  • However, it was argued that:
    • Even if the notice is set aside, the department should be allowed to issue a fresh notice to the legal representatives in accordance with law.

Court Findings / Judgment

The Delhi High Court held that:

  • A notice issued under Section 148 in the name of a deceased person is invalid and non est in law.
  • Since the assessee was not alive at the time of issuance, the notice cannot be sustained.
  • The Court relied on its earlier judgment in Savita Kapila v. ACIT.

Order

  • The impugned notice dated 24 June 2021 was set aside.
  • However, the Court clarified that:
    • The Revenue is not barred from issuing a fresh notice to the legal representatives of the deceased assessee, in accordance with law.

Important Clarification

  • The judgment reinforces that:
    • Jurisdictional defect arises when notice is issued to a dead person.
    • Such defect is not curable and renders proceedings void.
  • However:
    • Fresh proceedings against legal heirs are permissible if initiated properly under law.

Link to download the order -https://delhihighcourt.nic.in/app/case_number_pdf/2021:DHC:3045-DB/NAC27092021CW106862021_122643.pdf

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