Notice to dead assessee to reopen IT assessment is not legal
Judgment dated 13.7.2023 of the High Court of Bombay
Important legal issues – Is legal heir under statutory obligation to intimate death of assessee to IT department to update PAN record and 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 the earlier assessment and demand of Rs.5,89,18,411/-. There was followed by another notice dated 2.2.2022.
HELD 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. It was held that the notice to reopen assessment to a dead assessee is illegal. It also held that the writ petition challenging such reopening assessment notice is maintainable.
Writ Petition No.5557 of 2022 – Shri Devendra s/o. Vasudeo Jambhulkar s. Additional / Joint Commissioner of Income Tax and others
