The Delhi High Court has quashed a reassessment notice issued to dead person.

The bench of Justice Yashwant Varma and Justice Dharmesh Sharma has observed that no notice was issued to the legal heir of the deceased under Section 159(2)(b) of the Income Tax Act, despite the department being informed of the death. Section 159 of the Income Tax Act is applicable when proceedings are initiated and pending against an assessee during their lifetime, and the legal representative assumes responsibility after the assessee’s death. 

The petitioner, namely Puneet Verma being the son and legal heir of the deceased assessee late Lal Chanda Verma, invoked the extraordinary writ jurisdiction of this Court under Article 226 of the Constitution of India, 1950, for challenging the reassessment Notice.

The Income Tax Officer acting on the basis of a statement purportedly made by another assessee, namely, Sh. Sanjay Jain during assessment proceedings pertaining to the latter, proceeded to issue a notice under Section 148A(b)1 of the Act, in relation to the Assessment Year 2019-2020, dated 30 March 2023, calling upon the deceased assessee to furnish an explanation as to why certain financial transactions should not be considered as income chargeable to tax, and inter-alia indicating that a notice under Section 148 of the Income Tax Act might be issued for reassessment on the basis of the alleged escaped income.

The court allowed the petition and quashed the notice under Section 148A(b) of the Income Tax Act, in relation to the Assessment Year 2019-2020, dated 30 March 2023.

Case Details

Case Title: Late Sh. Lal Chand Verma Through His Legal Heir Versus Union Of India 

Case No.: W.P.(C) 8184/2023 & CM APPL. 31377/2023 (Stay)

Date: 08/01/2025

Counsel For Petitioner: Rohan Gupta

Counsel For Respondent: Vipul Agrawal

Click Here To Read Order