PAWAN VERMA L/R OF LATE SMT. VIDYA VERMA, S/O LATE KISHAN LAL VERMA V. INCOME TAX OFFICER

CW/9104/2023

AI Insights

The case revolves around the legality of notices issued under Section 148A of the Income Tax Act, 1961, against a deceased individual, which culminated in an order under Clause (d) of the same section. The petitioner, Pawan Verma, challenged the notices issued against his deceased mother, arguing their invalidity as they were directed to a deceased person. The court referenced previous judgments which established that such notices are indeed a nullity. The Department was given the option to re-initiate proceedings against the legal heirs, with specific instructions regarding the exclusion of the limitation period during the writ petition's pendency.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 747824 (HC-RAJASTHAN)
• Appeal Type: Others
• Pronouncement Date: 09-04-2024
• Assessment Year: misc
• Other Referred Cases: Shri Radha Mohan Khandelwal Vs. Assistant Commissioner of Income Tax, Legal Heirs of Smt. Sneh Lata Bhandari Vs. Income tax Officers & Ors., Meena V Kumar Vs. Principal Chief Commissioner of Income Tax & Another
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: ANUROOP SINGHI; ADITYA KHANDELWAL
• Assessee Lawyers: MAHENDRA GARGIEYA; HEMANG GARGIEYA; PEEYUSH GARGIEYA
• Keywords: Income Tax; Legal heirs; Limitation Period; Notice Nullity
• Section: 148A

Judgement Text

"[2024:RJ-JP:17168-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D. B. Civil Writ Petition No. 9104/2023 Pawan Verma L/R of Late Smt. Vidya Verma, S/o Late Kishan Lal Verma, Aged About 52 Years, R/o 181, 1st Floor, Ayodhya Marg, Pratap Nagar, Khatipura, Jaipur, Rajasthan, 302021 ----Petitioner Versus 1. Income Tax Officer, Ward 1 (3), New Central Revenue Building, Bhagwan Dass Road, Jaipur, Rajasthan, 302005. 2. Central Board of Direct Taxes, North Block, Secretariat, Building, New Delhi, 110001. ----Respondents For Petitioner : Mr. Mahendra Gargieya Advocate with Mr. Hemang Gargieya Advocate and Mr. Peeyush Gargieya Advocate. For Respondents : Mr. Anuroop Singhi Advocate with Mr. Aditya Khandelwal Advocate. HON'BLE THE CHIEF JUSTICE MR. MANINDRA MOHAN SHRIVASTAVA HON'BLE MR. JUSTICE BHUWAN GOYAL Order 09/04/2024 1. Heard. 2. The short issue arising for consideration in this case is whether the proceedings initiated under Section 148A of the Income Tax Act, 1961 (for short ‘the Act’) by issuing notices under Clause (b) therein, culminating in passing of an order under Clause (d) thereof, would be a nullity as the notices were initially issued against a dead person. 3. On this issue, learned counsel for the parties bring to the notice of this Court an order dated 27.05.2022 passed by Division Bench [2024:RJ-JP:17168-DB] (2 of 3) [CW-9104/2023] of this Court at Jaipur in Shri Radha Mohan Khandelwal Vs. Assistant Commissioner of Income Tax [D.B Civil Writ Petition No. 7896/2022] as also another order dated 27.02.2024 passed by Division Bench of this Court in Legal Heirs of Smt. Sneh Lata Bhandari Vs. Income tax Officers & Ors. [D.B. Civil Writ Petition No. 9985/2023]. 4. After going through the said orders, the legal position is no longer res integra and it can be declared that notices and proceedings against dead person would be a nullity. 5. In the case of Legal Heirs of Smt. Sneh Lata Bhandari(supra), the Division Bench of this Court has also granted liberty to the Department to re-initiate the proceedings under Section 148A(b) and Section 159 of the Act with specific order that the limitation period between the filing of the writ petition and till its disposal shall be excluded for the purpose of computation of limitation period for initiating such proceedings. 6. Learned counsel appearing for the revenue, relying upon order dated 22.03.2024 passed by Division Bench of this Court at Principal Seat at Jodhpur in the case of Meena V Kumar Vs. Principal Chief Commissioner of Income Tax & Another (D.B. Civil Writ Petition No. 15115/2022) would submit that the respondents may be granted liberty to initiate the proceedings against the legal representatives of the deceased. On the other hand, learned counsel for the petitioner would submit that even the initial notice which was issued on 08.04.2021 against the dead person itself was barred by limitation. [2024:RJ-JP:17168-DB] (3 of 3) [CW-9104/2023] 7. Be that as it may, if Respondent no. 1-Department decides to proceed against the legal representatives of the deceased, they will have the opportunity to assail the same on the ground that it is beyond the period of limitation. 8 Writ petition is, accordingly, allowed in the manner and to the extent as stated above. (BHUWAN GOYAL),J (MANINDRA MOHAN SHRIVASTAVA),CJ MANOJ NARWANI /147 "