LATE SHRI RAMBILAS HIRALAL JAJU THROUGH LEGAL HEIR SURESH RAMBILAL JAJU,TELANGANA vs. DCIT CIRCLE 1, AURANGABAD

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ITA 1028/PUN/2026Status: DisposedITAT Pune17 August 2026AY 2012-138 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that issuing a notice under Section 148 and passing an assessment order in the name of a deceased person is void ab initio. Such defects cannot be cured by Section 292B or 292BB of the Act.

What were the facts?

The assessee died before the issuance of notice under Section 148 and the subsequent assessment order. The notice and assessment order were passed in the name of the deceased assessee.

What were the issues?

Whether a notice issued under Section 148 and a consequential assessment order passed in the name of a deceased assessee are valid in law.

Which sections of the Income-tax Act were involved?

Section 148,Section 144,Section 147,Section 159,Section 292B,Section 292BB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PUNE BENCH “B”, PUNE

Before: SHRI PAVAN KUMAR GADALE & SHRI Dr. DIPAK P. RIPOTE

For Appellant: Shri Naveen Kumar Rander
For Respondent: Ms. Bhavya. I.V., Jt. CIT

आदेश /ORDER

PER Dr. DIPAK P. RIPOTE, A.M :

This is an appeal filed by the Legal heir of Late Rambilas Hiralal Jaju against the order of the Learned Commissioner of Income Tax (Appeals), NFAC, Delhi [Ld.CIT(A)], passed u/s. 250 of the Income Tax Act, 1961 (‘the Act’) for AY 2012-13 on 15.01.2026, emanating from the Assessment Order u/s 144 r.w.s. 147 of the Act, dated 20.12.2019.

Findings and analysis:

2.

We have heard both the parties and perused the record. In this case, the Ld. AR brought to our notice that the assessee Rambilas Hiralal Jaju died on 08.06.2013. Copy of the death certificate is at page No. 17 of the paper book. The same is as under :

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3.

It is observed that notice u/s 148 of the Act was issued in the name of Rambilas Hiralal Jaju on 31.03.2019. The copy of said notice is at page No. 18 of the paper book. The same is scanned and reproduced as under :

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4.

It is also observed that the assessment order u/s 144 r.w.s. 147 of the Act was passed on 20.12.2019 in the name of Shri Rambilas Hiralal Jaju. The same is scanned and reproduced here as under :

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5.

Thus, in this case, notice u/s 148 was issued in the name of deceased Shri Rambilas Hiralal Jaju. Similarly, assessment order was passed in the name of deceased Shri Rambilas Hiralal Jaju.

6.

Section 159 of the Income tax Act gives the procedure for issuing notice where the assessee is dead. The Section 159 of the Income tax Act is reproduced here as under : Legal representatives. 159. (1) Where a person dies, his legal representative shall be liable to pay any sum which the deceased would have been liable to pay if he had not died, in the like manner and to the same extent as the deceased. (2) For the purpose of making an assessment (including an assessment, reassessment or recomputation under section 147) of the income of the deceased and for the purpose of levying any sum in the hands of the legal representative in accordance with the provisions of sub-section (1),— (a) any proceeding taken against the deceased before his death shall be deemed to have been taken against the legal representative and may be continued against the legal representative from the stage at which it stood on the date of the death of the deceased; (b) any proceeding which could have been taken against the deceased if he had survived, may be taken against the legal representative; and

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(c) all the provisions of this Act shall apply accordingly.”

6.1 Thus, as per Section 159(2) (b) any proceedings which could have been taken against the deceased if he would have been surviving, may be taken against the Legal representative. In this case since the assessee was already dead at the time of issue of notice u/s 148, as per Section 159 of the Act it was mandatory for the Income tax Authorities to issue the notice u/s 148 in the name of the Legal representative. However, in this case the notice u/s 148 has been issued in the name of the deceased assessee. Income Tax Act has adopted the definition of Legal Representative as defined in Section 2(11) of Code of Civil Procedure 1908.

6.2 The Hon’ble Bombay High Court in the case Devendra Vs.Addl.CIT 461 ITR 463 (Bombay)[13-07-2023] has held as under : Quote “ 17. The issue which falls for consideration is as to whether the impugned notice under section 148 of the I.T. Act, 1961 is issued in the name of dead person said Shri Vasudeo Jambhulkar is enforceable in law. The fact that Shri Vasudeo Jambhulkar died on 8- 7-2020 is not disputed. The notice issued in the name of the dead person is unenforceable in the eye of law. 1 8. The respondents seek to justify their stand by contending that they were not intimated about the death of the assessee. The legal heirs did not take any steps to cancel the PAN registration in the name of assessee. 19. It has observed by the Delhi High Court in Savita Kapila v. Asstt. CIT [2020] 118 taxmann.com 46/273 Taxman 148/426 ITR 502/108 CCH 0049 DelHC] as under: "In the absence of a statutory provision it is difficult to cast a duty upon the legal representatives to intimate the factum of death of an assessee to the income tax department" "Consequently, the legal heirs are under no statutory obligation to intimate the death of the assessee to the revenue." 20. While informing on mail, the petitioner has mentioned that the legal heirs of the assessee submits the documents which proves that it was sufficient for the respondents to know that the assessee is no

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more and the legal heirs are submitting the documents. Legal heirs are under no statutory obligation to intimate the death of the assessee to the department.

It is also observed by the Delhi High Court in Savita Kapila (supra) as under: "32. This Court is of the view that in the absence of a statutory provision it is difficult to cast a duty upon the legal representatives to intimate the factum of death of an assessee to the income tax department. After all, there may be cases where the legal representatives are estranged from the deceased assessee or the deceased assessee may have bequeathed his entire wealth to a charity. Consequently, whether PAN record was updated or not or whether the Department was made aware by the legal representatives or not is irrelevant."

21.

The Madras High Court in Alamelu Veerappan v. ITO [2018] 95 taxmann.com 155/257 Taxman 72/102 CCH 0118 ChenHC] has observed as under :"Nothing has been placed before this Court by the Revenue to show that there is a statutory obligation on the part of the legal representatives of the deceased assessee to immediately intimate the death of the assessee or take steps to cancel the PAN registration."

22.

The High Court of Mumbai in Sumit Balkrishna Gupta v. Asstt. CIT [2019] 103 taxmann.com 188/262 Taxman 61/414 ITR 292/104 CCH 0379 MumHC] has observed as under :

"7. The issue of a notice under section 148 of the Act is a foundation for reopening of assessment. The sine qua non for acquiring jurisdiction to reopen an assessment is that such notice should be issued in the name of the correct person. This requirement of issuing notice to a correct person and not to a dead person is not a merely a procedural requirement but is a condition precedent to the impugned notice being valid in law. Thus, a notice which has been issued in the name of the dead person is also not protected either by provisions of section 292B or 292BB of the Act. This is so as the requirement of issuing a notice in the name of correct person is the foundational requirement to acquire jurisdiction to reopen the assessment. This is evident from section 148 of the Act, which requires that before a proceeding can be taken up for reassessment, a notice must be served upon the assessee. The assessee on whom the notice must be sent must be a living person i.e. legal heir of the deceased assessee, for the same to be responded. This in fact is the intent and purpose of the Act. Therefore, section 292B of the Act cannot be invoked to correct a foundational/substantial error as it is meant so as to meet the jurisdictional requirement."

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23.

The learned Counsel for the petitioner has also relied on the judgment in the case of Dharamraj v. ITO [2022] 113 CCH 0096 DelHC]. 24. The Principal Seat of this Court has recently passed the order in Dhirendra Bhupendra Sanghvi v. Asstt. CIT [2023] 151 taxmann.com 541/[Writ Petition No. 10163 of 2022, dated 27-6-2023] and has observed that the notice issued on dead persons is null and void. 25. For the reasons stated above and several High Courts have observed that the notice issued on dead person or re-opening of assessment of a dead person is null and void, this Court holds that the notice and all consequential proceedings in the name of the deceased assessee are null and void and consequentially the impugned notice dated 31-3-2021 under section 148 of the Income-tax Act is quashed and set aside and all actions in furtherance thereto are prohibited. Hence, the petition is allowed.” Unquote.

6.3 Thus, the Hon’ble Bombay High Court held that a Notice u/sec.148 issued in the name of Dead individual is null &void. The reassessment order passed in the name of dead individual is null &void. The Hon’ble Bombay High Court also held that Section 292B or 292BB will not be able to cure this defect.

6.4 Therefore, respectfully following the Hon’ble Jurisdictional High Court (supra), we hold that the impugned Notice under section 148 dated 31/03/2019 and the Order u/s 148 dated 20/12/2019 is void-ab-initio.

7.

In the result, the appeal of the assessee is allowed.

Order pronounced in the open Court on 17th August, 2026

Sd/- Sd/- (PAVAN KUMAR GADALE) (Dr. DIPAK P. RIPOTE) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे/Pune; दिन ांक/Dated : 17-08-2026 Ravi Digitally signed by Ravi Kumar Ravi Kumar Kumar Date: 2026.08.18 12:27:46 +05'30'

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आदेश की प्रतितिति अग्रेतिि/Copy of the Order is forwarded to: 1. अपील र्थी / The Appellant 2. प्रत्यर्थी / The Respondent 3. The concerned Pr. CIT, Pune 4. DR, ITAT, ‘B’ Bench, Pune 5. ग र्ड फ ईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Assistant Registrar आयकर अपीलीय अदिकरण,पुणे / ITAT, Pune

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