Case Law Details
Sushil Kumar Gupta Vs ITO (Calcutta High Court)
In a recent judgment by the Calcutta High Court, the death of a noticee before the initiation of a proceeding under Section 148A(b) of the Income Tax Act led to the nullification of an assessment order. This order was related to the assessment year 2013-2014, and the court decided to set it aside based on the circumstances of the case.
In the case of Sushil Kumar Gupta Vs ITO, the court was tasked with deciding the validity of an assessment order issued after the death of the noticee, Nirmala Gupta. The petitioner, Sushil Kumar Gupta, who is the husband and legal heir of the noticee, contested the assessment order. He was unaware of the notice issued under Section 148A(b) of the Act or the order under Section 148A(d) of the Act until he received a notice under Section 142(1) of the Act. The respondents, the Income Tax Authority, were unable to dispute these facts or the legal principle that proceedings cannot be initiated against a deceased person.
The Calcutta High Court’s decision to set aside the assessment order affirms the legal principle that no proceeding can be initiated against a deceased person. This decision offers valuable insight into the legal process in such cases, including the importance of properly serving notices. The court has permitted the Assessing officer to initiate a fresh proceeding in accordance with law against the writ petitioner/legal representatives, and the petitioner has agreed to cooperate.
FULL TEXT OF THE JUDGMENT/ORDER OF CALCUTTA HIGH COURT
Heard learned advocate appearing for the parties.
By this writ petition, petitioner has challenged the impugned assessment order dated 28th March, 2023, under Section 147 read with Section 144 of the Income Tax Act, 1961 relating to the assessment year 2013-2014 on the ground that the aforesaid impugned assessment proceeding is null and void from the initiation of the impugned proceeding by issuance of notice under Section 148A(b) of the Act issued on 18th May, 2022 since much before initiation of proceeding the notice Nirmala Gupta had expired on 3rd March, 2019 and petitioner who is the husband of the notice was not aware of issuance of any notice under Section 148A(b) of the Act or the order under Section 148A(d) of the Act and he came to know about the impugned proceeding for the first time after the service of notice under Section 142(1) of the Act.
Petitioner submits that he is the husband and legal heirs of the noticee and his PAN number is ADBPG6819R and if at all any proceeding is liable to be initiated the same should be initiated against the petitioner and submits that he has given his detail in the copy of this writ petition as well as he is ready and willing to furnish any further details if asked by the assessing officer concerned to initiate any fresh proceeding in accordance with law.
Mr. Mitra, learned advocate appearing for the respondents Income Tax Authority is not in a position to deny the aforesaid legal and factual position that before initiation of the impugned proceeding the noticee had died and that under the law no proceeding can be initiated against a dead person.
Considering the facts and circumstances of this case and submission of the parties this writ petition being WPA No. 14141 is disposed of by setting aside the aforesaid impugned assessment proceeding including the assessment order dated 28th March, 2023 with liberty to the Assessing officer concerned to initiate any fresh proceeding in accordance with law against the writ petitioner/legal representatives and the petitioner shall cooperate with the assessing officer in furnishing any document or details if asked for by the assessing officer concerned.
With this observation and direction this writ petition stands disposed of.
