Case Law Details
Late Madhuben Kantilal Patel Through Legal Heir And Son Kalpeshbhai Kantilal Patel Vs Union Of India (Gujarat High Court)
Introduction: The Gujarat High Court recently delivered a judgment in the case of Late Madhuben Kantilal Patel through Legal Heir and Son Kalpeshbhai Kantilal Patel vs Union of India. The petitioner challenged the proceedings initiated under Section 147, 148, and other related provisions of the Income Tax Act, 1961 (“the Act”). The crux of the matter revolved around the legality of issuing a notice under Section 148 in the name of the deceased taxpayer and subsequent actions taken by the authorities.
Factual Background: Late Smt. Madhuben Kantibhai Patel, the taxpayer, filed the income tax return for the assessment year 2017-18 but unfortunately passed away on August 25, 2020, during the COVID-19 pandemic. Her legal heir, Kalpeshbhai Kantibhai Patel, applied to become the “Representative Assessee.” The registration was initially rejected on March 14, 2021, due to incomplete documents. However, after reapplication on March 24, 2021, the legal heirs were registered, and they filed the return for the assessment year 2020-21 on behalf of the deceased.
Grievance and Legal Challenge: The petitioner contested the notice issued by respondent No.2 under Section 148 on June 30, 2021, in the name of the deceased for the assessment year 2017-18. The petitioner argued that, being the representative assessee, the notice to the deceased was impermissible under the law. The petitioner sought various reliefs, including declaring the impugned notice as devoid of legality, challenging the validity of certain notifications, and quashing the notice issued under Section 148.
Court Proceedings: The court heard arguments from both sides, and it was not disputed that the notice was issued to the late Madhuben Kantibhai Patel but represented by Kalpeshbhai Kantibhai Patel, the present petitioner. The draft order under Section 148A of the Act was served upon the legal heirs, following the directions of the Hon’ble Apex Court in a relevant case. The first notice was issued on June 30, 2021, and subsequent actions were taken after compliance with the amended act.
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