Radha Mohan Khandelwal Vs ACIT (Rajasthan High Court)
The Rajasthan High Court considered a challenge to notices and proceedings initiated under Section 148 of the Income Tax Act, 1961. The petitioner contended that the reassessment proceedings were invalid because they had been initiated and carried out against a deceased person. It was submitted that the concerned assessee, Anguri Devi Khandelwal, had died on 10.03.2021, whereas the notice under Section 148 was issued subsequently on 28.06.2021. The petitioner also relied upon the decision of the Supreme Court in Union of India & Others v. Ashish Agarwal, contending that notices issued under the unamended Section 148 after 01.04.2021 were required to be treated as notices under Section 148A and fresh proceedings could be undertaken only in accordance with the procedure laid down by the Supreme Court.
During the hearing, the respondents admitted the factual position that Anguri Devi Khandelwal had passed away before the issuance of the notice dated 28.06.2021. In view of this admitted fact, the High Court held that the notices issued and the proceedings conducted against the deceased person were a nullity and could not be sustained.
On the legal issue concerning the applicability of the Supreme Court’s judgment in Union of India & Others v. Ashish Agarwal, the respondents did not dispute the position advanced by the petitioner. The High Court noted the directions issued by the Supreme Court, whereby notices issued under the unamended Section 148 after 01.04.2021 were to be treated as show-cause notices under Section 148A(b), with further proceedings to be undertaken in accordance with Section 148A and other applicable provisions of the Act. The Supreme Court had also clarified that all available defences under Section 149 and all rights and contentions of both the assessee and the Revenue would remain open.
