N. BINOJ and SAVITHRI and SANOOJ and ANOOJ NARINGAPARAMBIL V. INCOME TAX OFFICER WARD 2, TIRUR and THE NATIONAL FACELESS ASSESSMENT CENTER and ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/INCOME-TAX OFFICER, NATIONAL FACELESS ASSESSMENT CENTER

WP(C)/34850/2023

AI Insights

The case involves the legal heirs of late Sri. Naringaparambil Bhaskaran, who challenged the re-assessment proceedings initiated by the Income Tax Department under Section 148 of the Income Tax Act, 1961. The proceedings were initiated following a show cause notice and an order under Section 148A(d), both issued in the name of the deceased. The petitioners argued that the proceedings against a deceased person were invalid and that they had not received a fresh notice as legal heirs. The Income Tax Department contended that the legal heirs were aware of and had participated in the proceedings. The court dismissed the petition, emphasizing the participation of the legal heirs in the proceedings and granted them additional time to comply with the notice under Section 148.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 810750 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 31-10-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM
• Assessee Lawyers: LATHA ANAND; S ARIKKATTIL
• Keywords: Income Tax; Legal heirs; Notice under section 148; Re-assessment; Show cause notice
• Section: 148; 148A(b); 148A(d)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH TUESDAY, THE 31ST DAY OF OCTOBER 2023 / 9TH KARTHIKA, 1945 WP(C) NO. 34850 OF 2023 PETITIONER/S: 1 N. BINOJ AGED 50 YEARS S/O LATE NARINGAPARAMBIL BHASKARAN, NARINGAPARAMBIL HOUSE, ANGADIPURAM, ANGADIPURAM P.O., MALAPPURAM, PIN - 679321 2 SAVITHRI AGED 75 YEARS W/O LATE NARINGAPARAMBIL BHASKARAN, NARINGAPARAMBIL HOUSE, ANGADIPURAM, ANGADIPURAM P.O., MALAPPURAM, PIN - 679321 3 SANOOJ AGED 43 YEARS S/O LATE NARINGAPARAMBIL BHASKARAN, NARINGAPARAMBIL HOUSE, ANGADIPURAM, ANGADIPURAM P.O., MALAPPURAM, PIN - 679321 4 ANOOJ NARINGAPARAMBIL AGED 48 YEARS S/O LATE NARINGAPARAMBIL BHASKARAN, NARINGAPARAMBIL HOUSE, ANGADIPURAM, ANGADIPURAM P.O., MALAPPURAM, PIN - 679321 BY ADVS. LATHA ANAND S.VISHNU (ARIKKATTIL) RESPONDENT/S: 1 INCOME TAX OFFICER WARD 2, TIRUR, INCOME TAX OFFICE, NO 20/1240, TARIFF BAZAR, TOWN HALL ROAD, TIRUR, KERALA, PIN - 676101 WP(C) NO. 34850 OF 2023 2 2 THE NATIONAL FACELESS ASSESSMENT CENTER MAYUR BHAWAN, CONNAUGHT LANE, BARAKHAMBA, NEW DELHI, REPRESENTED BY THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX (NAFAC)., PIN - 110001 3 ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/INCOME-TAX OFFICER, NATIONAL FACELESS ASSESSMENT CENTER, MAYUR BHAWAN, CONNAUGHT LANE, BARAKHAMBA, NEW DELHI., PIN - 110001 OTHER PRESENT: SRI.CHRISTOPHER ABRAHAM -SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 31.10.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 34850 OF 2023 3 J U D G M E N T The present writ petition has been filed by the legal heirs of late Sri.Naringaparambil Bhaskaran, challenging the proceedings for re- assessment initiated pursuant to Ext.P4 notice under Section 148 of the Income Tax Act, 1961 ('Act', for short). 2. Late Sri.Naringaparambil Bhaskaran, who died on 30.10.2021, was an assessee under the provisions of the Act. Show cause notice, Ext.P2, dated 27.3.2023 under Section 148A(b) of the Act was served in the name of late Sri.Naringaparambil Bhaskaran on his address, with respect to the assessment year 2019-2020. The first petitioner informed the assessing officer about the death of his father, Sri.Naringaparambil Bhaskaran. It appears that the first petitioner had filed reply to the said show cause notice being the legal heir of late Sri.Naringaparambil Bhaskaran. However, the said reply has not been placed on record before WP(C) NO. 34850 OF 2023 4 this Court. The first petitioner was heard and thereafter the order under Section 148A(d) was passed on 10.4.2023, Ext.P3. Thereafter, the first respondent issued notice under Section 148 of the Act, Ext.P4, dated 10.4.2023. After seven months of the order under Section 148A(d) and notice under Section 148 of the Act, Exts.P3 and P4 respectively, the petitioners have approached this Court on the ground that no fresh notice was issued to them being the legal heirs of late Sri.Naringaparambil Bhaskaran. Even the order under Section 148A(d) and the notice under Section 148 of the Act are in the name of the deceased assessee, late Sri.Naringaparambil Bhaskaran. It is therefore submitted that since the proceedings are against a dead person, the same are liable to be set aside and if the Department wants to proceed in respect of the income of the deceased Sri.Naringaparambil Bhaskaran, the Department should issue notice to his legal heirs. WP(C) NO. 34850 OF 2023 5 3. Sri.Christopher Abraham, learned Standing Counsel for the Income Tax Department, submits that the first petitioner did not only respond to the show cause notice, but he was also heard before order, Ext.P3, under Section 148A(d) was passed on 10.4.2023, and thereafter notice, Ext.P4, under Section 148 was issued. The petitioners have approached this Court as a legal strategy to knock out the proceedings on the ground of limitation. They were aware of the order under Section 148A(d) as well as notice under Section 148 and waited for a period of seven months to approach this Court for setting aside the said order and notice. Sri.Christopher Abraham, learned Standing Counsel for the Department, submits that this Court should not interfere with the proceedings, since the first petitioner had participated in the proceedings and he filed reply to the show cause notice under Section 148A(b) and was heard before the order, Ext.P3, under Section 148A(d) was passed on 10.4.2023. WP(C) NO. 34850 OF 2023 6 4. I have considered the submissions of both sides. 5. From the order impugned dated 10.4.2023, Ext.P3, issued under Section 148A(d) of the Act, it appears that the first petitioner had filed reply to the show cause notice issued in the name of his late father and was also heard. The notice under Section 148, Ext.P4, which also was of the same date, i.e. 10.4.2023, is in the names of late Sri.Naringaparambil Bhaskaran and the first petitioner, who is the son/legal heir of late Sri.Naringaparambil Bhaskaran. The petitioners cannot take a stand before this Court that since the show cause notice, Ext.P2, under Section 148A(b) was not in their names, subsequent orders and notice under Sections 148A(b) and 148, respectively, cannot be passed and issued to them. Since the first petitioner had already participated in the proceedings by not only filing reply to the show cause notice but also having been heard, this submission does not lie in the mouth of the WP(C) NO. 34850 OF 2023 7 petitioners and therefore, the same is liable to be rejected. The petitioners were not only aware of the proceedings, but also had participated in the proceedings. Therefore, the said contention is rejected. 6. The order dated 10.4.2023, Ext.P3, passed Section 148A(d) of the Act would disclose that after considering the reply and submissions of the first petitioner, the assessing officer is of the opinion that the assessment for the year 2019-2020 is required to be reopened under Section 147 by issuing notice under Section 148 of the Act and that the proceedings under Section 148 of the Act would continue in the hands of the legal heirs of the assessee. 7. In view of the above, I do not find any ground to entertain the present writ petition. The petitioners were granted 30 days time from the service of the notice under Section 148 of the Act to file return in the prescribed form for the assessment year 2019-2020. The said time period WP(C) NO. 34850 OF 2023 8 has already expired. The petitioners are therefore granted 30 days further time from today to file return in pursuance to the notice, Ext.P4, under Section 148 of the Act. If they file return as above, the assessing authority will consider the same, in accordance with law. With the aforesaid directions, the present writ petition stands finally disposed of. Pending interlocutory application, if any, in the writ petition stands dismissed. Sd/- DINESH KUMAR SINGH JUDGE jg WP(C) NO. 34850 OF 2023 9 APPENDIX OF WP(C) 34850/2023 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE DEATH CERTIFICATE OF THE ASSESSEE DATED 24/11/2021 Exhibit P2 TRUE COPY OF THE NOTICE DATED 27/03/2023 Exhibit P3 TRUE COPY OF THE ORDER DATED 10/04/2023 UNDER SECTION 148A(D) OF THE ACT Exhibit P4 TRUE COPY OF THE NOTICE DATED 10/04/2023 ISSUED UNDER SECTION 148 OF THE ACT "