Shini Shajan Vs PCIT (Kerala High Court)
The writ petition was filed by the widow of a deceased assessee whose income tax assessment for Assessment Year 2018–19 was completed after his death. The deceased had been engaged in the business of money lending since 1997 and had been filing income tax returns from 2005–06 onwards. A draft assessment order under Section 143(3) read with Section 144B of the Income Tax Act was issued to him on 21.05.2021, followed by a show cause notice dated 24.05.2021 requiring objections by 27.05.2021.
According to the petitioner, the assessee was hospitalised on 26.05.2021 and sought an extension of time to file objections, which was granted up to 05.06.2021. While undergoing treatment, the assessee passed away on 03.06.2021. Despite this, the assessment was finalised on 17.06.2021 by issuing an order in the name of the deceased assessee. A revision petition filed by the widow before the Principal Commissioner was rejected, leading to the present writ petition challenging the assessment order, consequential demand notice, and the revisional order.
The Revenue contended that several notices had already been issued and relied on Section 159 of the Income Tax Act, which provides for the liability of legal representatives in the event of the death of an assessee. The petitioner argued that the assessment order and demand notice were null and void as they were issued against a dead person, and that the proceedings violated principles of natural justice. It was also pointed out that a CBDT press release dated 20.05.2021 directed that no hearings be fixed up to 10.06.2021 due to portal unavailability, whereas the hearing in this case was scheduled for 05.06.2021.
