Amjad Ahmed Shaikh Vs ITO (Bombay High Court)
The Bombay High Court addressed a petition filed by Amjad Ahmed Shaikh challenging income tax notices and orders issued in the name of his deceased father, Ahmed Gulamnabi Shaikh. The petitioner argued that the impugned notices and subsequent orders, including an assessment order and demand notice, were invalid as they were issued to a person who had died in 2016. The petitioner also presented evidence showing that the Income Tax Officer was informed of the death in 2018. The petitioner relied on previous Bombay High Court judgments that established notices and orders issued to deceased individuals are null and void. The revenue argued that the notices were sent to the chartered accountant’s email, and that under Section 159 of the Income-tax Act, proceedings can continue against legal representatives.
The Bombay High Court ruled in favor of the petitioner, quashing the impugned notices and orders. The court emphasized that despite being informed of Ahmed Gulamnabi Shaikh’s demise, the Income Tax Department continued to issue notices and orders in his name. The court dismissed the revenue’s explanation regarding correspondence with the chartered accountant, stating it did not justify issuing notices to a deceased person. The court also rejected the argument based on Section 159, noting that no notices were issued to the legal representatives. Following precedents from its coordinate benches, the court declared the notices and orders void. However, the court clarified that this ruling does not prevent the Income Tax Department from initiating fresh proceedings against the legal representatives of the deceased, in accordance with the law. All other contentions were kept open.
FULL TEXT OF THE JUDGMENT/ORDER OF BOMBAY HIGH COURT
