INCOME TAX ACT, 1961

Section 148

Reassessment - Validity - Notice to Legal representatives of the deceased -

AO, after the death of original assessee, issued section 148 notice in his name to reopen assessment. Legal heir of assessee challenged validity of such notice contending that notice under section 148(2) was first published in the newspaper on 9-12-2017 which was beyond the period of limitation, however, record revealed that notice under section 148(2) was first issued on 30-3-2017, which as per section 149(1)(b) was within limitation. Thus, the contention that notice under section 148 (2) of the 1961 Act was barred by time is negatived. Held: Chapter XV of the 1961 Act lays down provision regarding liability was special cases. Section 159 where under provides for that where a person dies, his legal representatives should be liable to pay any sum which the deceased would have been liable to if he had not died, in the like manner and the same manner and to the extent as the deceased. And the legal representative of the deceased should be deemed to be assessee. In the present case, AO, after subjecting petitioner, legal representative to notice under section 142(1), found undisclosed income, which led him to pass assessment order on 27-12-2017, which was affirmed in the revision under section 264. Thus, petition failed and accordingly dismissed.

REFERRED : Chandreshbhai Jayantibhai Patel v. The ITO (2019) 413 ITR 276 (Guj) : 2019 TaxPub(DT) 496 (Guj-HC) Vipin Walia v. ITO (2016) 382 ITR 19 (Del) : 2016 TaxPub(DT) 1140 (Del-HC)

FAVOUR : Against the assessee

A.Y. :

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