Utpala Pradeep Jain Vs ACIT (Gujarat High Court)
Gujarat High Court has set aside a reassessment notice issued by the Income Tax Department to a deceased individual, reaffirming a consistent legal stance that proceedings initiated against a non-existent entity are void from their inception. The ruling, delivered in the case of Utpala Pradeep Jain Vs Assistant Commissioner of Income Tax (ACIT), underscores the jurisdictional requirement for income tax authorities to issue notices to living persons or their legal representatives.
Case Background: Reassessment Notice to Deceased Assessee
The petition was filed by Utpala Pradeep Jain, the legal heir of the late Shri Pradeep Roshanlal Jain. Shri Pradeep Jain had filed his income tax return for the Assessment Year (AY) 2017-18 on October 30, 2017, declaring a total income of Rs. 16,97,640/-. He passed away on September 30, 2020.
According to the petitioner, the Income Tax Department was repeatedly informed of Shri Jain’s demise through various letters and emails exchanged between December 16, 2020, and March 20, 2022. Despite these communications, the respondent, the Assistant Commissioner of Income Tax, issued a notice under Section 148 of the Income Tax Act, 1961, on July 30, 2022. Crucially, this notice was addressed to the deceased Shri P.R. Jain. An order under Section 148A(d) of the Act, which determines the necessity of reassessment, was also passed on the same date.
