Meet Lalwani, Legal Heir of Late Mrs. Amita Lalwani Vs ITO (Madhya Pradesh High Court)
Case Overview: The case involves a challenge to a notice issued under Section 148 of the Income Tax Act, 1961 (the Act) for the assessment year 2018-19. The petitioner, the legal heir of the original assessee, contested the validity of the notice, which was issued in the name of the deceased assessee, Mrs. Amita Lalwani. The petitioner argued that the notice issued to a dead person for reopening the assessment is null and void.
Key Points:
Foundation of Reassessment Notice:
- The court emphasized that a notice under Section 148 is the foundation for reopening an assessment.
- The legality of the notice hinges on it being issued in the name of the correct and living person.
Invalidity of Notice to Deceased Person:
- The court unequivocally declared that a notice issued to a dead person for reassessment is unenforceable in law.
- It cited various judgments, including those from the Delhi, Mumbai, and Madras High Courts, supporting the view that such notices are null and void.
Legal Representative’s Obligation:
- The court noted that legal representatives are under no statutory obligation to immediately inform the revenue of the death of the assessee or take steps to cancel the PAN registration.
Section 292B and 292BB Inapplicability:
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