Anguri Devi Khandelwal Vs DCIT (ITAT Jaipur)
Smt. Anguri Devi Khandelwal filed her return u/s 139(1). She passed away on 10.03.2021. Her legal heir informed the Department & was registered as representative assessee on the Income Tax portal on 29.10.2021. Despite this, the Department issued notice u/s 148A(b) on 14.03.2022 in the name of the deceased, even though it was fully aware of her death. This was followed by further notices u/s 143(2), 142(1) & show cause notices, all issued in the name of the deceased.
Subsequently, an order u/s 148A(d) was passed & notice u/s 148 was issued in the name of the legal heir, & finally, assessment u/s 147 r.w.s 143(3) was framed against the legal heir. The legal heir challenged the validity of the reassessment on the ground that the very initiation of proceedings was void ab initio since the first notice u/s 148A(b) was issued to a dead person, which is legally unenforceable.
Department argued that once the legal heir participated & the assessment was completed in his name, the defect stood cured. However, the Tribunal noted that the Department had prior knowledge of death, as legal heir registration was approved on 29.10.2021. Despite this, it continued proceedings in the name of the deceased, which is a fundamental jurisdictional defect.
