Laxmi Devi (Since Deceased) Vs ACIT (Delhi High Court)
Delhi High Court has quashed reassessment proceedings initiated by the income tax authorities against Laxmi Devi (since deceased), citing a fundamental flaw: the notices and the final assessment order were issued in the name of a deceased individual. The court’s decision, delivered in response to a petition filed by Laxmi Devi’s son, emphasizes that proceedings cannot be validly instituted against a deceased person.
The case involved the Assessment Year (AY) 2014-15, for which Laxmi Devi had filed her income tax return on July 31, 2014. She passed away on March 8, 2020. Subsequently, her son applied to be registered as her legal heir and representative, an application accepted by the Income Tax Department on February 27, 2021. The petitioner had also provided necessary documentation, including the deceased’s PAN details, his own PAN, the death certificate, and a bank letter confirming his nominee status.
Despite the department’s knowledge of the assessee’s demise and the registration of the legal heir, a notice under Section 148 of the Income Tax Act, seeking to reopen the assessment for AY 2014-15, was issued on March 31, 2021, in the name of the deceased Laxmi Devi. Subsequent notices under Section 142(1) on January 25, 2022, and February 21, 2022, also bore the name of the deceased. These proceedings culminated in an assessment order dated March 30, 2022, again framed in the name of the deceased assessee.
