Case Law Details
Late Shri Shankar Mukund Shenai Vs ITO (ITAT Mumbai)
ITAT Mumbai held that issuance of notice for re-opening of assessment under section 148 of the Income Tax Act against the deceased assessee is null in the eyes of law.
Facts- The assessee had filed the return of income on 29.07.2009 for A.Y. 2009-10 which was processed u/s 143(1). Later, the case of assessee for AY 2009-10 was reopened u/s 147 of the Act, by issuance of notice u/s 148 of the Act. Pursuant thereto, AO notes that assessee requested AO to treat the original return filed on 28.07.2009 as the return filed in response to the notice u/s 148 of the Act. And thereafter, the assessee’s daughter filed a letter dated 27.06.2016 informing him (AO) that assessee (Shri Shankar Mukund Shenai) had expired on 17.01.2016; and she being the daughter of the deceased/legal heir objects to the reopening by stating that “Notice issued on deceased person is void ab initio and the law is very clear that notice cannot be served on the deceased person”. The AO rejected the objection raised by an order dated 02.08.2016 and proceeded to reassess the income of the assessee and made an addition of Rs.52,88,045/-.
CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- Held that the impugned notice for re-opening the assessment for AY 2009-10 u/s 148 of the Act dated 28.03.2016 was issued in the name of deceased assessee; and despite AO knowing that assessee had passed away on 17.01.2016, proceeded to frame re-assessment, without first dropping the proceedings initiated by issuance of the impugned notice. Therefore, issuance of notice to re-open u/s 148 of the Act against the deceased assessee is null in eyes of law, so, we allow the legal issue raised by the assessee and quash the reassessment framed by AO.
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