Reassessment Notice Quashed as Section 148A(b) Procedure Was Not Followed Against Legal Heirs

Legal Heirs of Smt. Sneh Lata Bhandari Vs ITO (Rajasthan High Court)

Notice to Deceased Assessee Set Aside Because Mandatory Opportunity Was Not Given to Legal Representatives; Rajasthan High Court Quashes Reassessment Proceedings Because Section 148A Compliance Was Missing; Income Tax Notice Invalid Because Proceedings Were Continued Without Following Section 148A(b); Reassessment Order Quashed Because Legal Representatives Were Not Properly Heard Under Section 148A.

The petition challenged a show cause notice issued under Section 148A(b) of the Income Tax Act, 1961, dated 30.03.2023, along with subsequent proceedings, notices, and the order passed under Section 148A(d). The challenge arose because the notice was issued in the name of an assessee who had passed away on 16.05.2018, nearly five years before the issuance of the notice.

The petitioners, being the legal representatives of the deceased assessee, contended that a show cause notice could not be issued to a deceased person. They further argued that although the legal representatives had been brought on record, the Income Tax Department proceeded under Section 148 and issued subsequent notices and orders without complying with the mandatory requirements of Section 148A of the Act. According to the petitioners, the statutory opportunity contemplated under Section 148A(b) was never provided to the legal representatives before the reassessment proceedings were initiated.