Facts of the Case

The petitioner, Smt. Meenu Gupta, wife and legal heir of late Sh. Vipin Gupta, challenged a notice dated 15 February 2024 issued under Section 148A(b) of the Income-tax Act, 1961 for Assessment Year 2020-21, along with the consequential order under Section 148A(d) and notice under Section 148, both dated 21 March 2024.

Late Sh. Vipin Gupta expired on 17 August 2019. His return of income under Section 139(1) could not be filed by the legal representatives. The impugned notice under Section 148A(b) was nevertheless issued in the name of the deceased assessee and was served at his residential address, where it was received by the petitioner.

The petitioner filed a reply intimating the death of the assessee and submitted that the salary income referred to in the notice had already suffered tax deduction at source under Section 192 of the Act. Despite this, the Assessing Officer proceeded to pass an order under Section 148A(d) and issued notice under Section 148 in the name of the deceased.

 

Issues Involved

Whether reassessment proceedings initiated by issuing notices in the name of a deceased assessee are valid in law.

Whether issuance of notice under Sections 148A(b) and 148 to a dead person constitutes a jurisdictional defect.

Whether Section 159 of the Income-tax Act applies where proceedings were not initiated during the lifetime of the assessee.

Whether reassessment can be initiated where the alleged income has already suffered TDS under Section 192.

 

Petitioner’s Arguments

The petitioner contended that issuance of notices under Sections 148A(b) and 148 in the name of a deceased assessee renders the entire reassessment proceedings void ab initio. It was argued that issuance of a valid notice to a living assessee is a condition precedent for assumption of jurisdiction.

It was further submitted that the alleged escaped income comprised salary income received from Airports Authority of India, on which tax had already been deducted at source. In view of Sections 204 and 205 of the Act, no demand could be raised either against the deceased or the legal heir.

 

Respondent’s Arguments

The Revenue contended that the impugned notices and order were issued in accordance with the statutory framework governing reassessment proceedings. It was argued that the reassessment was based on information available on the Insight Portal and was legally sustainable.

 

Court Order / Findings

The Delhi High Court allowed the writ petition and quashed the impugned notice under Section 148A(b), the order under Section 148A(d), and the notice under Section 148. The Court held that:

Issuance of notice under Section 148 to a correct and living person is a sine qua non for acquiring jurisdiction to reopen an assessment.

A notice issued in the name of a dead person is a substantive jurisdictional defect and not a mere procedural irregularity.

Section 159 does not apply where proceedings were not initiated during the lifetime of the assessee and the legal representative did not step into his shoes.

Salary income on which tax has already been deducted at source cannot form the basis of reassessment proceedings.

The Court relied upon its earlier decision in Savita Kapila v. ACIT and also referred to Chandresh Jayantibhai Patel v. ITO to reiterate settled principles.

 

Important Clarification

The judgment authoritatively clarifies that:

Reassessment proceedings initiated in the name of a deceased assessee are void ab initio.

There is no statutory obligation on legal heirs to intimate the death of the assessee to the Income-tax Department.

Section 159 cannot be invoked where proceedings were not pending during the lifetime of the assessee.

Where tax has already been deducted at source on salary income, reassessment proceedings seeking to tax the same income are unsustainable.

This decision reinforces jurisdictional safeguards in reassessment proceedings and protects legal heirs from invalid reopening actions initiated in the name of deceased assessees.

Link to download the order - https://www.mytaxexpert.co.in/uploads/1770203482_SH.MEENUGUPTALEGALHEIROFLATESH.VIPINGUPTAVsASSISTANTCOMMISSIONEROFINCOMETAXCIRCLE671DELHIORS..pdf 

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