INCOME TAX ACT, 1961

Section 147

Reassessment - Validity - Issuance of section 148 notice in the name of deceased assessee -

AO issued notice under section 148 in the name of deceased assessee subsequently, AO issued letter along with notice under section 142(1) to one of the legal heirs but there was no compliance and hence, AO completed assessment ex-parte under section 144 read with section 147. Against which assesssee went on appeal before CIT(A) and challenged the order stating that notice issued under section 148 on a dead person was invalid and hence, requested to quash the notice and consequent assessment proceedings. However, CIT(A) upheld the validity of issue of notice, holding that legal heir chose not to divulge any facts and had not object the proceedings and participated in proceedings to the extent of receiving notice under section 142(1) and filing information regarding death of his father. Held: Issuance of a notice under Section 148 is foundation for reopening of assessment. The sine qua non for acquiring jurisdiction to reopen assessment is that such notice should be issued in the name of correct person. This requirement of issuing notice to a correct person and not to a dead person is not a merely a procedural requirement but is a condition precedent to the impugned notice being valid in law. Thus, notice which had been issued in the name of the dead person was also not protected either by Section 292B or 292BB. This is so as the requirement of issuing a notice in the name of correct person is foundational requirement to acquire jurisdiction to reopen assessment. Accordingly, notice issued under section 148 and subsequent reassessment proceedings were void-ab-initio.

Relied:Sri Aemala Venkateswara Rao ITA No. 227/Viz/2017, dated 3-3-2019 : 2019 TaxPub(DT0 3032 (Visakha-Trib). Distinguished:CIT v. Amarchand N. Shroff 1963 AIR 1448 : 1963 TaxPub(DT0 351 (SC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2007-08

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