R. Lakshmi Priya Vs ITO (Madras High Court)
The Madras High Court examined a writ petition challenging an assessment order dated 30.10.2024 passed under Section 147 read with Section 144 of the Income Tax Act, 1961 for Assessment Year 2016–2017. This was the second round of litigation arising from reassessment proceedings relating to a deceased assessee who had died on 19.08.2019. An earlier assessment order dated 31.05.2023 had been passed in the name of the deceased and was challenged by one of the legal heirs. In that earlier writ petition, the Court quashed the assessment order and directed the Assessing Officer to continue proceedings after issuing notices to all legal heirs and granting them a proper opportunity of hearing.
Pursuant to those directions, show cause notices dated 09.10.2024 and 18.10.2024 were issued to all legal heirs, granting seven days’ time on each occasion to submit their replies. The legal heirs neither responded to these notices nor sought extension of time. In this background, the Assessing Officer passed the impugned assessment order dated 30.10.2024 under Section 147 read with Section 144.
The Court observed that the impugned assessment order had been passed in accordance with the directions issued in the earlier writ petition and that there were no procedural irregularities warranting interference under Article 226 of the Constitution of India. However, the Court also took note of the fact that no replies had been filed by the legal heirs to the show cause notices and that the assessment resulted in a demand of ₹4,18,71,142, inclusive of interest.
