Vijender Pal Jain Vs ACIT (Delhi High Court)
In, the Delhi High Court considered a writ petition challenging reassessment proceedings initiated under Section 148 of the Income Tax Act, 1961 and the order passed under Section 148A(d) dated 30.07.2022. The challenge was based on two grounds: first, that the notice had been issued against a deceased assessee, and second, that approval for initiating reassessment proceedings had not been granted by the competent authority prescribed under Section 151 of the Act.
The petitioner submitted that the assessee, Mr. Rishi Raman Jain, had died on 20.03.2018 during the course of regular assessment proceedings for Assessment Year 2016-17. According to the petitioner, the Jurisdictional Assessing Officer was aware of the death, yet reassessment notice dated 30.07.2022 was still issued in the name of the deceased assessee. It was further argued that since the reassessment proceedings invoked an extended limitation period, approval ought to have been granted by the Principal Chief Commissioner of Income Tax (PCCIT), whereas in the present case approval had been granted only by the Principal Commissioner of Income Tax (PCIT).
The Revenue contended that the notice was not invalid because it had been issued in the name of “Mr. Rishi Raman Jain through Legal Heir Mr. Vijender Pal Jain.” The Revenue also pointed out that Vijender Pal Jain himself had filed a reply dated 18.06.2022 before the tax authorities expressly describing himself as the legal representative of the deceased assessee. It was therefore argued that the notice had been properly served and the reassessment proceedings were valid.
