Case Law Details
Dhirendra Bhupendra Sanghvi Vs ACIT (Bombay High Court)
Bombay High Court held that issuance of notice and all consequential proceedings in the name of a deceased assessee are null and void. Accordingly, order passed thereon is liable to be quashed and set aside.
Facts- Being aggrieved by the notice dated 19th March 2022 under section 148A(b) of the Income Tax Act, 1961 the order dated 31st March 2022 u/s 148A(d) and the notice dated 31st March 2022 issued u/s 148 all in the name of Late Smt. Usha B. Sanghvi and the approval granted on 30th March 2022 by the Respondent No.2 to Respondent No.1 to re-open the assessment of the deceased, the Petitioner being the legal heir has filed the present Petition under Article 226 of the Constitution.
Conclusion- In our view, if the concerned officers follow the settled law and abstain from issuing notices which are null and void, would not only help the citizenry but also the courts in the country who are already overburdened. In fact, it would be in tune with the Finance Act 2021 which aims to achieve the ultimate object of simplifying the tax administration, ease compliance and reduce litigation.
Held that the notice and all consequential proceedings in the name of a deceased assessee are null and void and consequently, the impugned notice dated 31st March 2022 u/s 148 of the Act, the Order dated 31st March 2022 u/s 148A(d) of the Act and Notice dated 19th March 2022 u/s 148A(b) of the Act are quashed and set aside and all actions in furtherance thereto are prohibited.
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