*******Delhi HC Quashes Reassessment Proceedings Initated as Notice issued in name of Deceased Assessee [Read Order]

Clipped from: https://www.taxscan.in/top-stories/delhi-hc-quashes-reassessment-proceedings-initated-as-notice-issued-in-name-of-deceased-assessee-1421739

The issuance of a notice under Section 148 of the Act is at the root of the jurisdiction of an AO to commence proceedings. Absent any such valid notice, the AO cannot assume jurisdiction for reopening the assessment

The Delhi High Court quashed the reassessment proceedings initated as notice issued in name of deceased assessee. Since the notice issued under Section 148 of the Act was invalid as it was issued in the name of the deceased Assessee, the proceedings commenced pursuant thereto must fail.

The petitioner is the legal heir of Laxmi Devi (Since Deceased), has challeged an assessment order dated 30.03.2022 [the impugned assessment order] and the consequential demand notice of the same date, issued pursuant to the impugned assessment order. The petitioner also impugns other notices issued by the Assessing Officer [AO]. The petitioner’s challenge rests on the ground that the notices were issued in the name of his mother, who had expired prior to the issuance of the said notices and the impugned assessment order was also framed in the name of the deceased Assessee.

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The petitioner’s mother [Assessee] had filed the return of income for Assessment Year [AY] 2014-15 on 31.07.2014. It is stated that the Assessee expired on 08.03.2020. Thereafter, the petitioner applied to be recorded as the legal heir / representative. The petitioner’s application to that effect was accepted by the department on 27.02.2021. The petitioner also uploaded the PAN details of the deceased Assessee, his own PAN, the death certificate of the Assessee, and a letter issued by the Indian Bank certifying the petitioner as the nominee of the deceased Assessee.

On 31.03.2021, a notice under Section 148 of the Act was issued in the name of the deceased Assessee, seeking to reopen the assessment for AY 2014-15. Subsequently, notices dated 25.01.2022 and 21.02.2022 under Section 142(1) of the Act were also issued in the name of the deceased Assessee. These proceedings culminated in the impugned assessment order dated 30.03.2022, which too was passed in the name of the deceased Assessee.