Bombay HC Rules Issuance of Income Tax Notices to Deceased Invalid. A dead person cannot be subject to reassessment notices under Section 148 of the Income Tax Act.

Case Note & Summary

Acts and Sections Discussed:

Section 148, 148A(b), and 148A(d) of the Income Tax Act, 1961 Judicial precedents and principles of natural justice

Ratio Decidendi:

Notices under Sections 148 and 148A issued against a deceased person are non-est and void ab initio as no legal proceedings can be initiated against a non-existing entity. Such actions violate basic principles of natural justice and due process.

Background of the Case (Paras 1–3) The petitioner, Gourang Anil Wakade, challenged reassessment notices issued under Sections 148 and 148A(d) against his late mother, Mrs. Meena Anil Wakade. Notices were issued posthumously, despite her passing away on March 21, 2020. The petitioner submitted a death certificate as evidence. Legal Arguments by Petitioner (Paras 4–5) Cited case laws including Bhupendra Bhikhalal Desai and Alamelu Veerappan, emphasizing that actions against a deceased individual are invalid. Counsel for the respondents admitted the notices were issued erroneously against a deceased individual. Legal Principles Applied (Paras 6–8) Fundamental jurisprudence dictates that an affected party must have the opportunity to defend themselves. Issuance of notices to a deceased person violates this principle (UMC Technologies Pvt. Ltd. vs. FCI). Legislative scheme under Section 148A mandates prior issuance of show cause notice and hearing, which cannot be fulfilled for a deceased person. Court’s Findings (Paras 9–11) Notices and related actions against the deceased Mrs. Meena Wakade were held non-est, void ab initio. However, the Revenue retains the right to issue fresh notices to legal heirs if statutory conditions under Sections 147/148 are met within the limitation period. Subject: Income Tax – Reassessment Notices – Legal Validity Against Deceased Persons Deceased Persons Legal Heirs Principles of Natural Justice