Himanshubhai Vinodbhai Patel Vs ITO (Gujarat High Court)
The Gujarat High Court allowed the petition challenging reassessment proceedings initiated against late Vinodbhai Hirabhai Patel, who had expired on 26.02.2017. The respondent issued an unsigned notice under Section 148 of the Income Tax Act, 1961, dated 30.03.2019 in the name of the deceased assessee, followed by a notice under Section 142(1) dated 06.08.2019. The petitioner informed the respondent that Vinodbhai Hirabhai Patel had already died. The petitioner’s objection to the validity of the Section 148 notice was nevertheless rejected by order dated 21.10.2019, and show-cause notices proposing an addition of Rs.9,97,994/- were issued.
The petitioner reiterated the objection on 23.10.2019. Despite this, the respondent passed an assessment order dated 20.12.2019 under Section 144 read with Section 147, determining total income at Rs.5,05,55,465/-, and issued a demand notice under Section 156 raising a demand of Rs.4,34,48,210/-.
The petitioner relied upon Chandreshbhai Jayantibhai Patel v. Income Tax Officer, (2019) 101 taxmann.com 362 (Gujarat), submitting that reassessment proceedings initiated against a deceased person were non-est in law. The respondent contended that the proceedings were permissible under Section 159, under which the legal representative, spouse or executor may be liable for filing returns and outstanding tax dues of a deceased assessee.
