ITO Vs Smt. Preethi V (Karnataka High Court)
Karnataka High Court held that proceedings initiated against deceased person are null and void and the same cannot be continued against his/her legal representative. Accordingly, order of Single Judge not interfered.
Facts- The Assessing Authority received information that the Assessee Smt.Ramanatha Gurulakshmi had huge cash deposits and that during the Assessment Year 201617 she had made transactions pertaining to immovable properties and further that she had not filed her Returns of Income declaring interest from the deposits and capital gains. A notice dated 31.01.2023 was issued to her u/s. 148A(b) of the Income Tax Act, 1961 by Speed Post whereby she was asked to show as to why notice u/s.148 should not be issued. The Speed Post came to be served on 03.02.2023 and service is vouched by postal records. Second notice was sent on 15.02.2023.
As no reply was filed to the above notices, order u/s.148A(d) came to be passed on 11.03.2023 and further notice u/s.148 also was issued directing the Assessee to file her returns. This was followed by statutory notice dated 15.11.2023 issued u/s.142(1) by Speed Post. However, the same went back unserved with a postal shara ‘Deceased’. Yet another notice dated 30.11.2023 followed under the same provision. The Respondent herein sent the reply dated 28.11.2023 mentioning that the Assessee died on 14.10.2022. Assessing Authority after referring to Sec.159(2)(d) of the Act made the Assessment u/s.147 r/w Sec.144, on 29.03.2024 against the deceased Assessee for the Assessment Year 2016-17.
