Rohit Baveja Vs PCIT (Madhya Pradesh High Court)
Madhya Pradesh High Court quashed multiple assessment orders issued against a deceased taxpayer under Section 148 of the Income Tax Act, 1961. The petitioner, son of the deceased, had informed the tax authorities about his father’s death during the assessment proceedings under Section 142(1). Despite this, no steps were taken to substitute the legal heir as per Section 159(2)(a). The court referred to its earlier decision in Meet Lalwani v. Income Tax Officer, which held that notices issued to a deceased individual are invalid. Accordingly, it ruled that the impugned tax notices and assessment orders issued after the taxpayer’s death were unenforceable.
While the court invalidated the contested notices, it clarified that the tax authorities retained the right to initiate fresh proceedings against the legal heir in accordance with the law. The ruling reinforces the requirement for tax authorities to properly address legal heirs when reopening assessments after a taxpayer’s death.
FULL TEXT OF THE JUDGMENT/ORDER OF ANDHRA PRADESH HIGH COURT
With the consent of parties, the matter is heard finally.
2. This petition under Article 226 of the Constitution of India has been filed by the petitioner assailing the legality, validity and propriety of impugned orders dated 24.4.2023, annexure P/1, 20.3.2024, annexure P/2, 21.3.2024, annexure P/3, 23.3.2024, annexure P/4 passed by respondent no.3 and 6.7.2022, annexure P/10 passed by respondent no.2 whereby the respondents have passed the assessment orders against dead person in pursuance to notice issued under section 148 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’).
