V. Eagle Securities Vs Joint Commissioner of State Taxes and Excise & anr. (Himachal Pradesh High Court)
Himachal Pradesh High Court has set aside an assessment order issued by the Joint Commissioner of State Taxes and Excise, strongly criticizing the Assessing Officer (AO) for passing an order against a deceased individual. The petition was filed by V. Eagle Securities, challenging the order dated February 4, 2025, which was digitally signed on that date but concerned a notice issued on March 14, 2023.
The Court noted that Sanjeev Shyam, the sole proprietor of M/s V. Eagle Securities Services, had passed away before the initial notice was even issued. This crucial fact, the Court observed, had been explicitly brought to the attention of the Assessing Authority by Sanjeev Shyam’s legal heir.
In a sharp rebuke, the High Court stated that despite being informed of the death, the Assessing Authority proceeded to issue the order, reflecting “sheer ignorance of law” or a “pre-determined mind to pass the order even against a dead person.” The Court emphasized that such an order is a “nullity in the eyes of law.”
Consequently, the impugned order (Annexure P-6) was set aside in its entirety, with all legal and factual questions left open for future consideration. The Court further directed that the proceedings be assigned to a different, independent officer, emphasizing that the officer who issued the flawed order should not be involved. This decision underscores the necessity for tax authorities to ensure due diligence regarding the legal status of assessees.
