• Notification Date: 19-02-2022
• Notification No: N/A

Reassessment Notice issued against a Dead Person is Invalid

The Delhi High Court has passed a recent order regarding the reassessment notice under the Income Tax Act. Reassessment notice under Section 148 of the Income Tax Act, 1961, issued against a dead person would be considered null and invalid.

The Delhi Division Bench comprising of Justice Navin Chawla and Justice Manmohan has relied upon the case of Savita Kapila versus Assistant Commissioner of Income Tax to declare the order. They answered the question of the validity of the notice and consequent proceedings against a dead person based on this case.

A petition was filed by the son of a dead assessee after receiving a notice issued by an Income-tax Officer under Section 148 of the Income Tax Act, 1961. The petitioner claimed to have not received the notice from the IT department. Another notice was issued by the IT department in the name of the assessee under Section 142(1) of the Act. Receiving no reply, a show-cause notice was issued by the Income-Tax Department. In the notice, the penalty charges applicable on the assessee under Section 221(1) and 271(1) (b) were mentioned.

The petitioner has challenged the Income-tax Department, saying that the notice was issued after the death of the assessee. He claimed that the notice and the further proceedings of the case are invalid and null.

The notice was issued by the Income-tax Department to the address as available in the ITD database. The notice was duly served by the IT department under Section 148 and it was not received back by the respondent. The assessment order was received back by the IT department with the information about the death of the assessee. The heirs of the assessee did not follow up with the respondent and the information of the assessee’s death was not updated. The Delhi High Court has approved of the petition and declined the notice issued by the Income-tax Department under Section 148.