HEMRAJ SONI LEGAL HEIR OF LATE INDRAMAL SONI V. INCOME TAX DEPARTMENT

CW/10202/2023

AI Insights

The case involves a writ petition filed by Hemraj Soni, the legal heir of late Indramal Soni, challenging an order passed under Section 148 and 148A(d) of the Income Tax Act, 1961. The primary grievance was that the order was issued against a deceased person, who had died prior to the initiation of the proceedings. The legal representatives of the deceased contested the validity of the proceedings initiated against a person who was no longer alive, referencing a similar case (Shri Radha Mohan Khandelawal vs. Assistant Commissioner of Income Tax) where the Supreme Court's decision in Union of India & Others Vs. Ashish Agarwal was applied. The Supreme Court had ruled that notices issued under the unamended Section 148 should be treated as issued under Section 148A, and the proceedings should be redrawn accordingly.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 746447 (HC-RAJASTHAN)
• Appeal Type: Others
• Pronouncement Date: 26-05-2025
• Assessment Year: misc
• Other Referred Cases: Union of India & Others Vs. Ashish Agarwal (Civil Appeal No. 3005/2022 and batch of appeals)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: PARTH VASHISHTHA
• Assessee Lawyers: RAJAT SHARMA
• Keywords: Dead person; Income Tax; Legal heir; Section 148; Section 148A
• Section: 148; 148A(d)

Judgement Text

"[2025:RJ-JP:21981-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Civil Writ Petition No. 10202/2023 Hemraj Soni Legal Heir Of Late Indramal Soni, Aged About 42 Years, R/o 115, Shri Shri Mal Bhawan, Sabji Mandi, Bijainagar, Ajmer - 305624. ----Petitioner Versus 1. Income Tax Department, Ito Ward 1, Beawar, Court Campus, Ajmer Road, Beawar, Rajasthan, 305901. 2. Central Board Of Direct Taxes, Through Chairperson Type- 7, Bungalow No. 75, New Moti Bagh, New Delhi- 110021. ----Respondents For Petitioner(s) : Mr. Rajat Sharma for Mr. Prakul Khurana For Respondent(s) : Mr. Parth Vashishtha for Mr. Shantanu Sharma HON'BLE MR. JUSTICE AVNEESH JHINGAN HON'BLE MR. JUSTICE MUKESH RAJPUROHIT Order 26/05/2025 1. This petition is filed challenging the order dated 30.05.2023 passed under Section 148 and 148A(d) of the Income Tax Act, 1961 (for short ‘the Act’). 2. One of the grievance raised is that the order has been passed against a dead person who died prior to initiation of the proceedings. 3. Learned counsel for the parties are at ad idem that the issue involved in the present petition is squarely covered by the order of Division Bench of this Court in DBCWP No.7882/2022 titled as [2025:RJ-JP:21981-DB] (2 of 4) [CW-10202/2023] Shri Radha Mohan Khandelawal vs. Assistant Commissioner of Income Tax wherein following order was passed:- “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 issued under Section 148 of the Act have been treated as Section148-A of the Act and proceedings may be drawn afresh. As the factual aspect of the case that even before issuing of notice dated 25.06.2021, 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 [2025:RJ-JP:21981-DB] (3 of 4) [CW-10202/2023] 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 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 [2025:RJ-JP:21981-DB] (4 of 4) [CW-10202/2023] 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. 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.” 4. The petition is disposed of in the same terms. (MUKESH RAJPUROHIT),J (AVNEESH JHINGAN),J RIYA /Garima/45 "