SH. VINOD KUMAR GUPTA (D),MAHARASHTRA vs. ITO, WARD NO. 52(5), DELHI

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ITA 2778/DEL/2026Status: DisposedITAT Delhi12 August 2026AY 2011-127 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the notice issued under Section 148 of the Income Tax Act, 1961, dated March 31, 2018, was issued in the name of Shri Vinod Kumar Gupta, who had expired on January 19, 2016. Following the Delhi High Court's judgment in Dharamraj vs. ITO, the Tribunal held that a notice under Section 148 issued to a deceased assessee is null and void. The Court in Dharamraj vs. ITO had stated that the issuance of a notice under Section 148 is the foundation for reopening an assessment, and the sine qua non for acquiring jurisdiction is that such notice should be issued in the name of the correct person, not a dead person. This is a condition precedent to the notice being valid in law. The Tribunal further noted that Section 159 of the Act does not apply as proceedings were not initiated against the assessee when alive, and the legal representatives did not step into the shoes of the deceased assessee in this context. The Tribunal also referred to the Delhi High Court's view that Section 292B and Section 292BB of the Act are inapplicable to notices issued to a dead person or to legal representatives in such circumstances. Consequently, the impugned notice dated March 31, 2018, was held to be null and void, and all consequential proceedings and assessment orders were set aside. The grounds of appeal were accepted.

What were the facts?

The assessee, Shri Vinod Kumar Gupta, filed a return of income for Assessment Year 2011-12. Subsequently, the Assessing Officer (AO) received information from the ADIT (Investigation) regarding substantial cash deposits made by the assessee. The AO had reason to believe that income chargeable to tax had escaped assessment. The assessee had expired on January 19, 2016. A notice under section 148 of the Income Tax Act, 1961, was issued to the legal representatives (LRs) of the deceased assessee on March 31, 2018. No reply was received. A show cause notice and a notice under section 142(1) were issued to the LRs on December 7, 2018. The AO passed an assessment order on December 24, 2018, making an addition of Rs. 15,11,49,146/-. The CIT(A) dismissed the appeal against this order. The assessee, through LRs, filed the present appeal before the ITAT.

What were the issues?

1. Whether the notice issued under Section 148 of the Income Tax Act, 1961, dated March 31, 2018, to the deceased assessee, Shri Vinod Kumar Gupta, who expired on January 19, 2016, is valid and confers jurisdiction on the Assessing Officer? Assessee's contentions: The assessee argued that the notice under Section 148 dated March 31, 2018, issued to the deceased assessee is illegal. Reliance was placed on the Delhi High Court's decisions in Vipin Walia vs. ITO and Dharamraj vs. ITO. Revenue's contentions: The Revenue relied on the impugned order.

Which sections of the Income-tax Act were involved?

Section 148,Section 144,Section 250,Section 143(1),Section 143(3),Section 142(1),Section 159,Section 292B,Section 292BB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “E”, NEW DELHI

Before: SHRI VIMAL KUMAR & SHRI KRINWANT SAHAY

For Respondent: Shri Tarun Sharda, Sr. DR
Hearing: 06.08.2026Pronounced: 12.08.2026

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “E”, NEW DELHI BEFORE SHRI VIMAL KUMAR, JUDICIAL MEMBER AND SHRI KRINWANT SAHAY, ACCOUNTANT MEMBER ITA No. 2778/Del/2026, A.Y. 2011-12 Sh. Vinod Kumar Gupta(D), Vs. Income Tax Officer, Through his LR’s Smt. Ward 52(5), Madhu Gupta, Sh. Anuj New Delhi gupta, Sh. Ashish Gupta, Flat No. 502, Balaji Towers, Off Linking Road, Santa Cruz (West), Mumbai, Maharashtra �थायीलेखासं./जीआइआरसं./PAN/GIR No: AJKPG5737H Appellant .. Respondent Appellant by : Sh. Atul Agarwal, Advocate Sh. Rakesh Kumar Khare, Advocate Respondent by : Shri Tarun Sharda, Sr. DR Date of Hearing 06.08.2026 Date of Pronouncement 12.08.2026

O R D E R PER VIMAL KUMAR, JM: The appeal filed by the appellant/assessee is against order dated 23.09.2025 of the Ld. Commissioner of Income Tax (Appeals)/NFAC, Delhi [hereinafter referred to as “the CIT(A)”] under section 250 of the Income Tax Act, 1961

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(hereinafter referred to as “the Act”) arising out of assessment order dated 24.12.2018 of Ld. Assessing Officer/ ITO, Ward 52(5), New Delhi (hereinafter referred to as ‘the AO’) u/s 147 r.w.s. 144 of the Act for A.Y. 2011-12.

2.

Brief facts of the case are that the assessee Shri Vinod Kumar Gupta filed return of income declaring income of Rs. 12,69,090/- on 27.03.2012. The return of income was processed u/s 143(1) of the Act. No assessment u/s 143(3) of the Act was made. An information was received from income ADIT, (Investigation), Unit- 3(2), Jhandewalan, New Delhi in relation of the assessee, who had made high and consistent cash deposit in accounts held by him in Kotak Mahindra Bank, ICICI Bank and CITI Bank to the tune of Rs. 15,41,15,282/-. Ld. AO had reasons to believe that a sum of Rs. 15,41,15,282/- chargeable to tax had escaped assessment for A.Y. 2011-12. From the report of investigation wing it was gathered that the assessee expired on 19.01.2016. After reopening notice u/s 148 of the Act to LR’s of assessee were issued on 31.03.2018. No reply was received. Show cause notice along with notice u/s 142(1) of the Act dated 07.12.2018 was issued to the LR’s of assessee. On completion of proceedings, ld. AO vide order dated 24.12.2018 made addition of Rs. 15,11,49,146/-.

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2.1 Against order dated 24.12.2018 of Ld. AO, the assessee filed appeal before the ld. CIT(A) which was dismissed the appeal vide order dated 23.09.2025.

3.

Being aggrieved, the appellant/assessee through LR’s filed present appeal.

4.

Ld. Authorized Representative for appellant/assessee submitted that notice u/s 148 of the Act dated 31.03.2018 issued to the assessee Sh. Vinod Kumar Gupta who expired on 19.01.2016 at page No. 67 of paper book is illegal. Reliance was placed order dated 15.02.2016 in W.P.(C) 8273/2015 & CM No. 17434/2015 Vipin Walia vs. ITO and order dated 17.01.2022 in C.W.(C) No. 9227/2021 titled as Dharamraj vs. ITO.

5.

Ld. Departmental Representative relied on impugned order.

6.

From examination of record in light of the aforesaid rival contention, it is crystal clear that notice u/s 148 of the act dated 31.03.2018 is in name of assessee Sh. Vinod Kumar Gupta who had expired on 19.01.2016.

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6.1 Hon’ble High Court of Delhi in writ petition No. CN 227/2021 titled as Dharamraj vs. ITO in order dated 17.01.2022 held as under:

“8. The issue of validity of a notice and proceedings held subsequent thereto against a dead person is no longer res integra. This Court in Savita Kapila vs. Assistant Commissioner of Income-Tax, in W.P. (C) No.3258/2020 has held as under: "AN ALTERNATIVE STATUTORY REMEDY DOES NOT OPERATE AS A BAR TO MAINTAINABILITY OF A WRIT PETITION WHERE THE ORDER OR NOTICE OR PROCEEDINGS ARE WHOLLY WITHOUT JURISDICTION. IF THE ASSESSING OFFICER HAD NO JURISDICTION TO INITIATE ASSESSMENT PROCEEDINGS, THE MERE FACT THAT SUBSEQUENT ORDERS HAVE BEEN PASSED WOULD NOT RENDER THE CHALLENGE TO JURISDICTION INFRUCTUOUS. 24. Further, the fact that an assessment order has been passed and it is open to challenge by way of an appeal, does not denude the petitioner of its right to challenge the notice for assessment if it is without jurisdiction. If the assumption of jurisdiction is wrong, the assessment order passed subsequent would have no legs to stand. If the notice goes, so does the order of assessment. It is trite law that if the Assessing Officer had no jurisdiction to initiate assessment proceeding, the mere fact that subsequent orders have been passed would not render the challenge to jurisdiction infructuous. xxxxx THE SINE QUA NON FOR ACQUIRING JURISDICTION TO REOPEN AN ASSESSMENT IS THAT NOTICE UNDER SECTION 148 SHOULD BE ISSUED TO A CORRECT PERSON AND NOT TO A DEAD PERSON. CONSEQUENTLY, THE JURISDICTIONAL REQUIREMENT UNDER SECTION 148 OF THE ACT, 1961 OF SERVICE OF NOTICE WAS NOT FULFILLED IN THE PRESENT INSTANCE. xxxxx 26. In the opinion of this Court the issuance of a notice under Section 148 of the Act is the foundation for reopening of an assessment. Consequently, 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 merely a procedural

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requirement but is a condition precedent to the impugned notice being valid in law. [See Sumit Balkrishna Gupta v. Asst. Commissioner of Income Tax, Circle 16(2), Mumbai & Ors., (2019) 2 TMI 1209- Bombay High Court]. 27. xxxxx Consequently, in view of the above, a reopening notice under Section 148 of the Act, 1961 issued in the name of a deceased assessee is null and void. xxxxxx AS IN THE PRESENT CASE PROCEEDINGS WERE NOT INITIATED/PENDING AGAINST THE ASSESSEE WHEN HE WAS ALIVE AND AFTER HIS DEATH THE LEGAL REPRESENTATIVE DID NOT STEP INTO THE SHOES OF THE DECEASED ASSESSEE, SECTION 159 OF THE ACT, 1961 DOES NOT APPLY TO THE PRESENT CASE. 30. Section 159 of the Act, 1961 applies to a situation where proceedings are initiated/pending against the assessee when he is alive and after his death the legal representative steps into the shoes of the deceased assessee. Since that is not the present factual scenario, Section 159 of the Act, 1961 does not apply to the present case. 31. xxxxx THERE IS NO STATUTORY REQUIREMENT IMPOSING AN OBLIGATION UPON LEGAL HEIRS TO INTIMATE THE DEATH OF THE ASSESSEE. 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. In Alamelu Veerappan (supra) [2018 (6) TMI 760 - Madras High Court] it has been held "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." xxxxx

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34.

Consequently, the legal heirs are under no statutory obligation to intimate the death of the assessee to the Revenue. SECTION 292B OF THE ACT, 1961 HAS BEEN HELD TO BE INAPPLICABLE, VIS-À-VIS, NOTICE ISSUED TO A DEAD PERSON IN RAJENDER KUMAR SEHGAL [2018 (12) TMI 697 (DELHI)], CHANDRESHBHAI JAYANTIBHAI PATEL [2019 (1) TMI 353 -GUJARAT HIGH COURT] AND ALAMELU VEERAPPAN [2018 (6) TMI 760 - MADRAS HIGH COURT]. 35. This Court is of the opinion that issuance of notice upon a dead person and non-service of notice does not come under the ambit of mistake, defect or omission. Consequently, Section 292B of the Act, 1961 does not apply to the present case. IN RAJINDER KUMAR SEHGAL (SUPRA) A COORDINATE BENCH OF THIS COURT HAS HELD THAT SECTION 292BB OF THE ACT, 1961 IS APPLICABLE TO AN ASSESSEE AND NOT TO A LEGAL REPRESENTATIVE. xxxxx 38. This Court is also of the view that Section 292BB of the Act, 1961 is applicable to an assessee and not to a legal representative. Further, in the present case one of the legal heirs of the deceased assessee, i.e. the petitioner, had neither cooperated in the assessment proceedings nor filed return or waived the requirement of Section 148 of the Act, 1961 or submitted to jurisdiction of the Assessing Officer. She had merely uploaded the death certificate of the deceased assessee. xxxxxx 40. Consequently, the applicability of Section 292BB of the Act, 1961 has been held to be attracted to an assessee and not to legal representatives." 9. The above judgment was followed by this Court in W.P.(C) No.2678/2020 titled Mrs. Sripathi Subbaraya Manohara L/H Late Sripathi Subbaraya Gupta vs. Principal Commissioner of Income Tax 22, N.Delhi & Anr. 10. In the present case also, as the notice under Section 148 of the Act was issued against a dead person, the same is null and void and all consequent proceedings/orders, including the assessment order and the subsequent notices, being equally tainted, are liable to be set aside. 11. Consequently, the impugned notice dated 30.03.2019 issued under Section 148 of the Act is set aside along with all consequential proceedings/notices/assessment orders.”

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7.

In view of the above material facts of issuance of notice u/s 148 of the act dated 31.03.2018 to Sh. Vinod Kumar Gupta who died on 19.01.2016 page No. 67 of paper book by respectfully following the well settled legal position is held to be null and void. Consequential proceedings and assessment orders are set aside. Grounds of appeal are accepted.

8.

In the result, the appeal filed by the assessee is allowed for statistical purposes.

Order pronounced in the open court on 12.08.2026

Sd/- Sd/- (KRINWANT SAHAY) (VIMAL KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated:12.08.2026 Binita, Sr. PS Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI

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