High Court Overturns Posthumous Assessment Order Under IT Act's Section 148A(b)

Court Name : Calcutta High Court

Parties : Sushil Kumar Gupta Vs ITO 

Decision Date : 19 July 2023

Judgement ref : WPA 14141 of 2023

A tax professional, and you've just stumbled upon a pivotal ruling by the High Court. The court has overturned an assessment order issued posthumously under Section 148A(b) of the Income Tax Act. This isn't just a legal nuance - it's a decision that could have substantial implications for your practice.

Section 148A(b) of the Income Tax Act is a key provision that governs the issuance of assessment orders. However, in this case, the court determined that the order was issued posthumously, which contradicts the provisions of the Act.

Now, consider what this means for your practice and your clients. This ruling sets a precedent that could influence future cases. It clarifies the interpretation of Section 148A(b) and provides guidance on the issuance of assessment orders.

As a tax professional, it's your responsibility to stay abreast of these developments. You need to comprehend the implications of this ruling and how it could affect your clients. You need to be prepared to advise them on the potential impact on their tax obligations and strategies.

So, as you delve into the details of this High Court ruling, keep in mind that it's more than just a legal decision. It's a piece of the puzzle that helps you understand the broader tax landscape. And as a tax professional, it's your compass for navigating the complexities of the Income Tax Act and ensuring that your clients are compliant.

Heard learned advocate appearing for the parties.

By this writ petition, petitioner has challenged

the impugned assessment order dated 28th March,

2023, under Section 147 read with Section 144 of the

Income Tax Act, 1961 relating to the assessment year

2013-2014 on the ground that the aforesaid

impugned assessment proceeding is null and void

from the initiation of the impugned proceeding by

issuance of notice under Section 148A(b) of the Act

issued on 18th May, 2022 since much before

initiation of proceeding the noticee Nirmala Gupta

had expired on 3rd March, 2019 and petitioner who is

the husband of the noticee was not aware of issuance

of any notice under Section 148A(b) of the Act or the

order under Section 148A(d) of the Act and he came

to know about the impugned proceeding for the first

time after the service of notice under Section 142(1)

of the Act.

Petitioner submits that he is the husband and

legal heirs of the noticee and his PAN number is

ADBPG6819R and if at all any proceeding is liable to

be initiated the same should be initiated against the

petitioner and submits that he has given his detail in

the copy of this writ petition as well as he is ready

and willing to furnish any further details if asked by

the assessing officer concerned to initiate any fresh

proceeding in accordance with law.

Mr. Mitra, learned advocate appearing for the

respondents Income Tax Authority is not in a

position to deny the aforesaid legal and factual

position that before initiation of the impugned

proceeding the noticee had died and that under the

law no proceeding can be initiated against a dead

person.

Considering the facts and circumstances of

this case and submission of the parties this writ

petition being WPA No. 14141 is disposed of by

setting aside the aforesaid impugned assessment

proceeding including the assessment order dated 28th

March, 2023 with liberty to the Assessing officer

concerned to initiate any fresh proceeding in

accordance with law against the writ petitioner/legal

representatives and the petitioner shall cooperate

with the assessing officer in furnishing any

document or details if asked for by the assessing

officer concerned.

With this observation and direction this writ

petition stands disposed of.

(Md. Nizamuddin, J.)

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WPA 14141 Of 2023

19.07.2023

Sl no. 5 Mr. Sushil Kumar Gupta

Ct no. 2 - Vs -

P.M. Income Tax Officer, Ward 44(1), Kolkata & Ors.

Mr. Avra Mazumder,

Ms. Alisha Das,

Mr. Samrat Das,

Mr. Suman Bhowmik

… for the petitioner

Mr. Tilak Mitra

… for the respondent