Legal representatives can not be proceeded without following provisions u/s 148A(b) – High Court
In a recent judgment, the Hon’ble High Court of Rajasthan has held that proceedings under the liability created against legal representatives of deceased assessee can be initiated but only after compliance of mandatory provisions under Section 148A (b) the Income Tax Act, 1961.
ABCAUS Case Law Citation:
4194 (2024) (08) abcaus.in HC
In the instant case, the assessee had filed petition before the Hon’ble High Court to set aside Notice under Section 148 and order passed under Section 148A(d) of the Income Tax Act, 1961 (the Act).
The petitioner submitted that the show cause notice could not have been issued to a dead person and by the time such order was passed, the legal representatives of the deceased were brought on record and a decision was taken to proceed under Section 148 of the Act and without complying the mandatory provisions of Section 148A of the Act, a notice u/s 148 was issued to legal representative.
The Revenue submitted that Section 159 of the Act creates almost the same liability upon the legal heirs as he step into the shoes of assessee for the purpose of assessment or reassessment upon the legal representatives of the deceased assessee. Therefore, thus the Department was entitled to proceed against the legal representatives
The Hon’ble High Court opined that the proceedings under the liability created against the legal representatives of the deceased assessee can be initiated against the petitioner but only
after compliance of mandatory provisions under Section 148A (b) of the Act. Whereas, as per record the provision of Section 148A(b) of the Act had not been complied against the legal representatives of the deceased.
Accordingly, the Hon’ble High Court quashed and set aside the impugned notice u/s 148A of the Act and the order passed under Section 148A(d) of the Act. However, the Revenue was given liberty to reinitiate the proceedings against the legal representatives of the deceased while strictly complying with the provisions of the Section 148A(b) and 159 of the Act.
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