SHRI RADHA MOHAN KHANDELWAL vs. ASSISTANT COMMISSIONER OF INCOME TAX

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CW/7896/2022HC RajasthanRJHC02041044202227 May 2022Bench: MANINDRA MOHAN SHRIVASTAVA,SUDESH BANSAL4 pages
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What did the High Court hold?

The High Court held that the notices and proceedings drawn under Section 148 of the Income Tax Act, 1961, against the deceased assessee, Smt. Anguri Devi Khandelwal, were a nullity, as the assessee had passed away on March 10, 2021, prior to the issuance of the notice on June 28, 2021. The court acknowledged the admission by the respondent's counsel regarding this factual aspect. Furthermore, the court found the judgment of the Hon'ble Supreme Court in Union of India & Others Vs. Ashish Agarwal to be applicable. Consequently, the writ petition was disposed of in terms of the Supreme Court's directions. The court granted liberty to the revenue to proceed against the legal representative of the deceased assessee in accordance with the directions laid down in the Ashish Agarwal case, which involves treating the Section 148 notices as show-cause notices under Section 148A and following the prescribed procedure. No specific amount in dispute was recorded.

What were the facts?

The petitioner, Shri Radha Mohan Khandelwal, challenged proceedings initiated under Section 148 of the Income Tax Act, 1961, against his deceased mother, Smt. Anguri Devi Khandelwal. The assessment year(s) are not explicitly stated. The challenge was based on the fact that the notice under Section 148 was issued after the assessee's death on March 10, 2021, and the notice itself was dated June 28, 2021. The petitioner also relied on the Supreme Court's decision in Union of India & Others Vs. Ashish Agarwal, which directed that notices issued under the unamended Section 148 be treated as show-cause notices under Section 148A. The respondent, Assistant Commissioner of Income Tax, admitted the factual aspect of the assessee's death prior to the notice.

What were the issues?

1. Whether the notices and proceedings initiated under Section 148 of the Income Tax Act, 1961, against a deceased person are null and void? (Question of law) 2. Whether the directions issued by the Hon'ble Supreme Court in Union of India & Others Vs. Ashish Agarwal are applicable to the present case? (Question of law) Assessee's Contentions: - The notices and proceedings under Section 148 are a nullity as they were initiated against a dead person. The death occurred on March 10, 2021, and the notice was issued on June 28, 2021. - The judgment of the Hon'ble Supreme Court in Union of India & Others Vs. Ashish Agarwal is applicable, requiring the notices to be treated as show-cause notices under Section 148A. Revenue's Contentions: - The revenue, through its counsel, admitted the factual aspect of the assessee's death prior to the issuance of the notice. - The legal position regarding the applicability of the Supreme Court's judgment in Union of India & Others Vs. Ashish Agarwal was not disputed.

Which sections of the Income-tax Act were involved?

Section 148,Section 148A,Section 149

AI-generated summary — verify with the full judgment below

HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Civil Writ Petition No. 7896/2022 Shri Radha Mohan Khandelwal, Legal Heir Of Late Smt. Anguri Devi Khandelwal And S/o Of Late Shri Sitaram Khandelwal, Aged About 62 Years, R/o 674 Khandaka Mansion, Bordi Ka Rasta, Kishanpole Bazar Jaipur 302001, Rajasthan India ----Petitioner Versus Assistant Commissioner Of Income Tax, Circle 4, New Central Revenue Building, Statue Circle, Jaipur, Rajasthan, 302005 ----Respondent For Petitioner(s) : Mr. Sandeep Taneja, Advocate For Respondent(s) : Mr. Amit Malani, Advocate for Mr. Nikhil Simlote, Advocate HON'BLE THE ACTING CHIEF JUSTICE MR. MANINDRA MOHAN SHRIVASTAVA HON'BLE MR. JUSTICE SUDESH BANSAL Judgment / Order 27/05/2022 Heard. Mr. Amit Malani, Advocate, on instructions from Mr. Nikhil Simlote, Advocate on advanced copy, appears on behalf of the respondents. The orders and proceedings under Section 148 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) have been challenged on the ground that it was initiated and passed against the dead person and in any case in view of the judicial pronouncement of the Hon’ble Supreme Court in the case of Union of India & Others Vs. Ashish Agarwal (Civil Appeal No. 3005/2022 and batch of appeals), the notices which were (Uploaded on 29/06/2022 at 12:44:01 PM) (Downloaded on 30/10/2026 at 10:01:51 AM) (2 of 4) [CW-7896/2022] issued under Section 148 of the Act have been treated as Section 148-A of the Act and proceedings may be drawn afresh. As the factual aspect of the case that even before issuing of notice dated 28.06.2021, Anguri Devi Khandelwal died on 10.03.2021, is admitted by counsel for respondent, the notices and the proceedings drawn would be nullity. As far as the legal position with regard to applicability of judgment of Hon’ble Supreme Court in the case of Union of India & Others Vs. Ashish Agarwal (supra) is concerned, the same is not disputed by the learned counsel for the respondent. Considering the above, we are inclined to dispose off the petition in terms of the order passed by the Hon’ble Supreme Court in the case of Union of India & Others Vs. Ashish Agarwal (supra). Following directions have been issued by the Hon’ble Supreme Court in the aforesaid case: “10. In view of the above and for the reasons stated above, the present Appeals are ALLOWED IN PART. The impugned common judgments and orders passed by the High Court of Judicature at Allahabad in W.T. No. 524/2021 and other allied tax appeals/petitions, is/are hereby modified and substituted as under:- (i) The impugned section 148 notices issued to the respective assessees which were issued under unamended section 148 of the IT Act, which were the subject matter of writ petitions before the various respective High Courts shall be deemed to have been issued under section 148A of the IT Act as substituted by the Finance Act, 2021 and construed or treated to be show-cause notices in terms of section 148A(b). The assessing officer shall, within thirty days from today provide to the respective assessees information and material relied upon by the Revenue, so that the assessees can reply to the show-cause notices within two weeks thereafter; (ii) The requirement of conducting any enquiry, if required, with the prior approval of specified authority under section 148A(a) is hereby (Uploaded on 29/06/2022 at 12:44:01 PM) (Downloaded on 30/10/2026 at 10:01:51 AM) (3 of 4) [CW-7896/2022] dispensed with as a one-time measure vis-à-vis those notices which have been issued under section 148 of the unamended Act from 01.04.2021 till date, including those which have been quashed by the High Courts. Even otherwise as observed hereinabove holding any enquiry with the prior approval of specified authority is not mandatory but it is for the concerned Assessing Officer to hold any enquiry, if required; (iii) The assessing officers shall thereafter pass orders in terms of section 148A(d) in respect of each of the concerned assessees; Thereafter after following the procedure as required under section 148A may issue notice under section 148 (as substituted); (iv) All defences which may be available to the assessees including those available under section 149 of the IT Act and all rights and contentions which may be available to the concerned assessees and Revenue under the Finance Act, 2021 and in law shall continue to be available. 11. The present order shall be applicable PAN INDIA and all judgments and orders passed by different High Courts on the issue and under which similar notices which were issued after 01.04.2021 issued under section 148 of the Act are set aside and shall be governed by the present order and shall stand modified to the aforesaid extent. The present order is passed in exercise of powers under Article 142 of the Constitution of India so as to avoid any further appeals by the Revenue on the very issue by challenging similar judgments and orders, with a view not to burden this Court with approximately 9000 appeals. We also observe that present order shall also govern the pending writ petitions, pending before various High Courts in which similar notices under Section 148 of the Act issued after 01.04.2021 are under challenge. 12. The impugned common judgments and orders passed by the High Court of Allahabad and the similar judgments and orders passed by various High Courts, more particularly, the respective judgments and orders passed by the various High Courts particulars of which are mentioned hereinabove, shall stand modified/substituted to the aforesaid extent only. (Uploaded on 29/06/2022 at 12:44:01 PM) (Downloaded on 30/10/2026 at 10:01:51 AM) (4 of 4) [CW-7896/2022] All these appeals are accordingly partly allowed to the aforesaid extent. In the facts of the case, there shall be no order as to costs.” Learned counsel for the respondent would submit that he may be granted liberty to proceed against the legal representative of the deceased in accordance with the directions given by the Hon’ble Supreme Court in the case of Union of India & Others Vs. Ashish Agarwal (supra), which learned counsel for the petitioner does not dispute. In view of the above, this writ petition is finally disposed off in terms of order dated 04.05.2022 passed by the Hon’ble Supreme Court in the case of Union of India & Others Vs. Ashish Agarwal (supra), granting liberty to proceed against legal representative of deceased Anguri Devi Khandelwal. (SUDESH BANSAL),J (MANINDRA MOHAN SHRIVASTAVA),ACTING CJ Mohita /3 Powered by TCPDF (www.tcpdf.org) (Uploaded on 29/06/2022 at 12:44:01 PM) (Downloaded on 30/10/2026 at 10:01:51 AM)

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