Nagpur: The High Court has quashed the notices sent by the taxpayers for reopening of his returns after the death of a person under Section 148 of the Income Tax Act. The court has also observed that the Income Tax Department could have continued proceedings against the legal heirs of the individual only if the same notice had been served during his lifetime. The matter came before the Nagpur Bench of the Bombay High Court.
The Nagpur office of the Income Tax Department had sent a notice to a government official, Mahadev Shambharkar, on the ground that an income of Rs 1.5 crore from the sale of land had evaded tax. The notice was issued on March 2021. However, Sambharkar passed away two and a half years ago. The land deal was done in 2015-16.
Soon after the first notice, the lawyer on behalf of his legal heir informed the department that Shambharkar was no more. Another notice has been sent.
“After the first notice was sent in March, we had informed the department about the death of the assessee but in July another notice was sent,” it said. ram heda, counsel for his son Bandu Shambharkar, who moved the court.
The court on Thursday dismissed the notice, Heda said.
Shambharkar passed away on January 27, 2019. Nine days before his death, he was served a notice under section 133(6) of Income Tax, which deals with seeking information from an assessee. Heda said the officer had sought information about the land deal from Shambharkar, who died in no time. This notice was not related to reopening of returns.
Two years later, another notice was issued under section 148, which deals with reopening of returns. By then Sambharkar had passed away.
Elaborating on the court’s stand, Heda said, “In this case, even though the notice seeking information was issued during Sambharkar’s lifetime, but after his death the notice of reopening of the return was sent.
In that case the proceedings cannot be continued against his son who is the legal heir.
The court has directed the Income Tax Department to issue a fresh notice to the legal heirs in accordance with the law. Heda said that the matter has now been narrowed down. The returns for the last four years could be opened till March 2021. However, now it has been reduced to three years. He said it can now put on hold the matter which pertains to the assessment year 2016-17.
The Nagpur office of the Income Tax Department had sent a notice to a government official, Mahadev Shambharkar, on the ground that an income of Rs 1.5 crore from the sale of land had evaded tax. The notice was issued on March 2021. However, Sambharkar passed away two and a half years ago. The land deal was done in 2015-16.
Soon after the first notice, the lawyer on behalf of his legal heir informed the department that Shambharkar was no more. Another notice has been sent.
“After the first notice was sent in March, we had informed the department about the death of the assessee but in July another notice was sent,” it said. ram heda, counsel for his son Bandu Shambharkar, who moved the court.
The court on Thursday dismissed the notice, Heda said.
Shambharkar passed away on January 27, 2019. Nine days before his death, he was served a notice under section 133(6) of Income Tax, which deals with seeking information from an assessee. Heda said the officer had sought information about the land deal from Shambharkar, who died in no time. This notice was not related to reopening of returns.
Two years later, another notice was issued under section 148, which deals with reopening of returns. By then Sambharkar had passed away.
Elaborating on the court’s stand, Heda said, “In this case, even though the notice seeking information was issued during Sambharkar’s lifetime, but after his death the notice of reopening of the return was sent.
In that case the proceedings cannot be continued against his son who is the legal heir.
The court has directed the Income Tax Department to issue a fresh notice to the legal heirs in accordance with the law. Heda said that the matter has now been narrowed down. The returns for the last four years could be opened till March 2021. However, now it has been reduced to three years. He said it can now put on hold the matter which pertains to the assessment year 2016-17.
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