Assessment order passed against dead assessee is invalid: HC

Late Shobha Mehta Vs ACIT (Rajasthan High Court)

A perusal of the orders passed in the earlier round of proceedings under Section 143(3) of the Income Tax Act for the assessment year 2015-16 would clearly indicate that Dy. Commissioner of Income Tax had been intimated regarding the death of the assessee. The assessment order dated 21.12.2017 was passed taking into account the fact that the assessee had expired.

Thus, the plea of the respondent authorities that they were not intimated regarding the death of the assessee Smt. Shobha Mehta, is factually incorrect. It is not in dispute that the notice of re-assessment under Section 148 of the Income Tax Act was issued to the assessee Smt. Shobha Mehta who had expired about 6 years back. No notice whatsoever was issued to the legal representative/s of the assessee before undertaking the re­assessment proceedings. Thus, the impugned re-assessment and the assessment order having been passed against the dead assessee, is invalid and the same cannot be sustained in the eyes of law.

FULL TEXT OF THE JUDGMENT/ORDER OF RAJASTHAN HIGH COURT

The instant writ petition has been preferred on behalf of the assessee Late Smt. Shobha Mehta through her legal heir Shri Kanhaiya Lal Mehta for challenging the reassessment notice (Annexure-P/7) dated 23.03.2021 issued by the respondent ACIT under Section 148 of the Income Tax Act and the Assessment Order (Annexure-P/13) dated 30.03.2022 issued under Section 147 read with Section 144 of the Income Tax Act.

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