Bipinbhai Vs ITO (Gujarat High Court)
The Gujarat High Court in Bipinbhai Vs Income Tax Officer considered a petition under Article 227 of the Constitution seeking to quash the reassessment order dated 21 March 2023 passed under Section 148A(d) of the Income Tax Act, 1961, and the consequential notice dated 23 March 2023 issued under Section 148 for the Assessment Year 2016–17.
The petitioner contended that the reassessment notice had been wrongly issued in the name of his deceased father, Mr. Melaji Bhalaji Bhoi, who had passed away on 30 May 2020—well before the issuance of the impugned notice. It was argued that since the notice was issued against a dead person, the entire proceeding was invalid in law and liable to be quashed.
According to the petitioner’s counsel, a show cause notice dated 9 February 2023 under Section 148A(b) had been issued by the Assessing Officer, Ward-1, Mehsana, alleging escapement of income amounting to ₹2,11,93,899 on account of a sale of immovable property by the deceased. The petitioner responded to this notice on 21 February 2023, clearly informing the Assessing Officer at Mehsana that his father had died and submitting a copy of the death certificate. The petitioner also pointed out that the deceased had been residing in Ahmedabad, and therefore, the jurisdiction would lie with the Assessing Officer at Ahmedabad. The reply further stated that there was no escapement of income as alleged.
