IMPORTANT legal issues for every IT Assesses
Judgment dated 13.7.2023 of the High Court of Bombay - IMPORTANT legal issues for every IT Assessee
(i) whether the legal heir is under statutory obligation to intimate death of assessee to IT department or to take steps for cancellation of PAN registration and (ii) whether notice to reopen assessment to a dead assessee is valid?
In 2016-2017, during his life-time, deceased – father of the petitioner filed IT Return declaring taxable income of Rs.5,57,090/- and exemption on sale of agricultural land of Rs.9,31,12,500/-. Assessee died on 8.7.2020.
On 31.3.2021, the notice under Section 148 of the Income Tax Act to deceased-assessee to reopen earlier assessment and demand of Rs.5,89,18,411/-. There was followed by another notice dated 2.2.2022.
HELD that the writ petition challenging the notice is maintainable, that the legal heir of deceased assessee is not under statutory obligation to intimate death of the assessee immediately to IT Department or to take steps to cancel PAN registration and that the notice to reopen assessment to a dead assessee is illegal.
