Allowing the petition the Court held that the reassessment proceedings could not be initiated under section 147 since the notices under section 148 were issued against a deceased person. The petitioner, legal heir, had already intimated the Department about the death of the assessee and yet the Assessing Officer had proceeded to reopen the assessment of the assessment year 2013-14 under section 147. The course as adopted was clearly reflective of complete non-application of mind. That for the earlier assessment years, 2010-11 and 2012-13 the Department had already dropped the proceedings on the premise that the notices under section 148 were issued against a deceased person. Therefore, on the yardstick of the principle of consistency, the Department ought not to have proceeded to initiate action under section 147 for the assessment year 2013-14, especially when there was no alteration in the facts as compared to the earlier two assessment years. Accordingly, the notices issued under section 148A(b), the order passed under section 148A(d), the notice issued under section 148 and the assessment order passed under section 147 read with section 143, for the assessment year 2013-14, were set aside and quashed. (AY.2013-14)
Pradeep Jain v. ITO (2024) 465 ITR 399 / 164 taxmann.com 284 (Delhi)(HC)
S. 148A: Reassessment-Conducting inquiry, providing opportunity before issue of notice-Death of assessee-Intimated to Department-Proceedings for earlier assessment years dropped for reason that notices issued against dead person invalid-Notice and proceedings void ab initio-Notices and orders set aside. [143, 147, 148, 148A(b), 148A(d), Art. 226]