Smt. Sushila Gupta Vs Union of India & Ors (Calcutta High Court)
The writ petition challenged an assessment order dated March 27, 2025 for Assessment Year 2016–17 on the ground that reassessment proceedings were initiated and concluded in the name of a deceased person. The original assessee had died on June 29, 2018. Despite this, a notice under Section 148 of the Income Tax Act, 1961 was issued, and reassessment proceedings were carried forward. The revenue authorities were informed of the death through a letter dated March 30, 2024, which was acknowledged on the official portal. Notwithstanding this knowledge, the authorities proceeded to pass an assessment order under Sections 147, 144, and 144B in the name of the deceased.
The Court held that while the initial issuance of notice could not be faulted due to lack of prior information, the continuation of proceedings after being informed of the death was contrary to law. Consequently, both the reassessment notice and the assessment order were set aside. However, liberty was granted to the Income Tax Department to reinitiate reassessment proceedings in accordance with law by issuing a fresh notice to the legal representatives after following statutory requirements. The petitioner was directed to provide details of other legal representatives if sought, failing which proceedings could continue against the petitioner alone.
