MR VATSAL S SHAH vs. THE INCOME TAX OFFICER,WARD NO 33(2) ,AND ORS

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WPA/6859/2022HC CalcuttaWBCHCA014370202226 April 2022Bench: HON'BLE JUSTICE MD. NIZAMUDDIN2 pages
AI SummaryRemanded

What did the High Court hold?

The Tribunal quashed the impugned notice dated March 31, 2021, and all further proceedings initiated based on that notice. The reasoning was that the notice was issued in the name of a dead person, and this fact, along with the intimation of death, was acknowledged by the Assessing Officer. The Tribunal's decision is based on the principle that a notice issued to a deceased person without proper legal representation or substitution is void ab initio. However, the quashing of the notice does not preclude the respondent Income Tax authority from initiating fresh proceedings in accordance with the law.

What were the facts?

The petitioner, Vatsal S Shah, challenged a notice dated March 31, 2021, issued under Section 148 of the Income Tax Act, 1961, for assessment year 2014-15. The petitioner contended that the notice was invalid because it was issued in the name of a deceased person. The noticee had passed away on July 2, 2015, and this fact, along with a death intimation, was communicated to the Assessing Officer on October 6, 2015, with due acknowledgment. The respondent Assessing Officer, represented by Mr. P. Dudharia, could not contradict these facts, which were supported by the records.

What were the issues?

1. Whether the notice dated March 31, 2021, issued under Section 148 of the Income Tax Act, 1961, for assessment year 2014-15 is bad and illegal, on the ground that it was issued in the name of a dead person? Assessee's contention: The notice is invalid as it was issued in the name of a deceased individual, whose death was duly intimated to the Assessing Officer with acknowledgment. Revenue's contention: The revenue, through its counsel, was not in a position to contradict the facts presented by the petitioner.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

26.04.2022. p.b. Sl. No.19. W.P.A. 6859 of 2022 Vatsal S Shah Vs. Union of India & Ors. Mr. Binayak Gupta. ……..for the petitioner. Mr. P. Dudharia. ………for the respondents. Heard learned advocates appearing for the parties. In this matter, petitioner has challenged the impugned notice dated 31st March, 2021 under Section 148 of the Income Tax Act, 1961 relating to the assessment year 2014-15, on the ground that the same is bad and illegal for the reason that it has been issued in the name of a dead person and the noticee has expired on 2nd July, 2015 and death of the noticee was intimated to the Assessing Officer concerned on 6th October, 2015 and receipt of such intimation was duly acknowledged by the respondent Assessing Officer concerned as appears at page 29 of the writ petition. Mr. Dudharia, learned advocate appearing for the respondent Assessing Officer concerned is not in a position to contradict these facts which are substantiated by records.

2 Considering the submission of the parties and facts and circumstances as appears from record, this writ petition being WPA No.6859 of 2022 is disposed of by quashing the aforesaid impugned notice dated 31st March, 2021 and all further proceedings on the basis of the aforesaid impugned notice. However, quashing of the impugned notice and quashing thereunder will not prevent the respondent Income Tax authority to initiate any fresh proceeding in accordance with law. With this observation and direction, this writ petition being WPA 6859 of 2022 stands disposed of. (Md. Nizamuddin, J.)

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