MEENA V KUMAR vs. PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX

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CW/15115/2022HC RajasthanRJHC01067950202222 March 2024Author: MANINDRA MOHAN SHRIVASTAVA,MUNNURI LAXMAN2 pages
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What did the High Court hold?

The High Court held that notices and proceedings initiated against a dead person are a nullity. This legal position is no longer res integra, as confirmed by previous Division Bench orders of the Court. In a similar case, liberty was granted to the Department to re-initiate proceedings under Section 148A(b) and Section 159 of the IT Act, with a specific direction to exclude the period between the filing of the writ petition and its disposal from the computation of the limitation period for initiating such proceedings. The Court found no reason why the Department should not be given similar liberty to proceed against the legal representatives, provided the initial notices were within the period of limitation. Therefore, the petition was allowed, granting liberty to the Department to proceed in accordance with law by re-initiating proceedings.

What were the facts?

The petitioner, Meena V Kumar, is the legal heir of the deceased Vidhya Bhambhani. The Income Tax Department initiated proceedings under Section 148A of the Income Tax Act, 1961, by issuing notices. These notices were initially issued against the deceased, Vidhya Bhambhani. The petitioner challenged these proceedings, arguing that notices issued against a dead person are a nullity. The High Court considered previous judgments by its own Division Benches in similar matters.

What were the issues?

1. Whether proceedings initiated under Section 148A of the Income Tax Act, 1961, by issuing notices under Clause (b) thereof, culminating in an order under Clause (d), are a nullity if the notices were initially issued against a dead person? (Question of law turning on Section 148A and Section 159 of the Income Tax Act, 1961). Assessee's Contention: Notices issued against a dead person are a nullity. Revenue's Contention: Not explicitly recorded in the judgment. The judgment notes that learned counsel for the parties brought to the Court's notice relevant previous orders.

Which sections of the Income-tax Act were involved?

Section 148A,Section 159

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
[2024:RJ-JD:13971-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR D.B. Civil Writ Petition No. 15115/2022 Meena V Kumar W/o Late Vijay R Kumar, Aged About 63 Years, R/o A-601, Miraj Malhar, Mahaveer Nagar, Shobhagpura, Udaipur, Rajasthan-313011, Legal Heir Of Vidhya Bhambhani W/o Lt. R.k. Bhambhani. ----Petitioner Versus 1. Principal Chief Commissioner Of Income Tax, Rajasthan, New Central Revenue Building, Statue Circle, Janpath 302005. 2. Income Tax Officer, Ward 2(1), Room No. 107, First Floor, Sub City Centre, Savina, Udaipur. ----Respondents For Petitioner(s) : Mr. Harshit Bhurani For Respondent(s) : Mr. KK Bissa HON'BLE THE CHIEF JUSTICE MR. MANINDRA MOHAN SHRIVASTAVA HON'BLE MR. JUSTICE MUNNURI LAXMAN

Order 22/03/2024

1.

Heard.

2.

The short issue arising for consideration in this case is whether the proceedings initiated under Section 148A of the Income Tax Act by issuing notices under Clause (b) therein, culminating in passing of an order under Clause (d) thereof, would be a nullity as the notices were initially issued against a dead person.

3.

On this issue, learned counsel for the parties bring to the notice of this Court an order dated 27.05.2022 passed by Division Bench of this Court at Jaipur in Shri Radha Mohan Khandelwal Vs. Assistant Commissioner of Income Tax [D.B Civil Writ Petition No.

[2024:RJ-JD:13971-DB] (2 of 2) [CW-15115/2022] 7896/2022] as also another order dated 27.02.2024 passed by Division Bench of this Court in Legal Heirs of Smt. Sneh Lata Bhandari Vs. Income tax Officers & Ors. [D.B. Civil Writ Petition No. 9985/2023].

4.

After going through the said orders, the legal position is no longer res integra and it can be declared that notices and proceedings against dead person would be a nullity.

5.

In the case of Legal Heirs of Smt. Sneh Lata Bhandari(supra), the Division Bench of this Court has also granted liberty to the Department to re-initiate the proceedings under Section 148A(b) and Section 159 of the IT Act with specific order that the limitation period between the filing of the writ petition and till its disposal shall be excluded for the purpose of computation of limitation period for initiating such proceedings.

6.

We are of the view that if the date on which initially notices were issued, which have been successfully assailed here, were within the period of limitation, there is no reason as to why the Department should not be given that liberty to take the proceedings under the provisions of law against the legal representatives in view of the provisions contained in Section 159 of the IT Act.

7.

Therefore, granting liberty to the Department to proceed in accordance with law by re-initiating proceedings under the law, this petition is allowed. (MUNNURI LAXMAN),J (MANINDRA MOHAN SHRIVASTAVA),CJ 181-divyaP/-

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