Savita Kapila, Legal Heir of Late Shri Mohinder Paul Kapila v. Assistant Commissioner of Income Tax, Circle 43(1) Delhi

Parties Involved

Facts Summary

The petitioner, Savita Kapila, is the legal heir of the deceased assessee, Shri Mohinder Paul Kapila. An information was received by the Assessing Officer that the deceased assessee had cash deposits and time deposits in his bank account for Financial Year 2011-12, but no return had been filed. A notice under Section 148 of the Income Tax Act, 1961 was issued to the deceased assessee on 31st March, 2019, which was the last date of limitation. However, the deceased assessee had expired on 21st December, 2018. The notice could not be served upon the deceased assessee. Further, penalty under Section 271(1)(b) of the Act was imposed on the deceased assessee through the legal heir for non-compliance of notices issued to the deceased assessee. An assessment order was passed in the name of the petitioner on 27th December, 2019.…

Legal Issues

• 1. Whether the notice under Section 148 of the Act, 1961 issued to a deceased assessee is valid in law?
• 2. Whether the proceedings against the petitioner are barred by limitation?
• 3. Whether Section 159 of the Act, 1961 applies to the present case?
• 4. Whether there is a statutory obligation upon legal heirs to intimate the death of the assessee to the income tax department?
• 5. Whether Section 292B of the Act, 1961 applies to the present case?

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

Similar Judgements

• Marappan Balasubramanian (Deceased), Rep by Legal Heir Kavitha Balasubramanian (Wife) v. The ITO, Ward 1(2), Tiruppur, Tamil Nadu

• Monisha Dhawan (Through Legal Heir Nayana Dhavan) Vs. ACIT

  Delhi Bench benchAY 2013-14Allowed

• Lily Sarkar, Legal Heir of Late Sudhir Chowdhury Vs ITO, Ward-1(2), Durgapur

  Kolkata Bench benchAY 2011-12Allowed

• Mr. Kamal Bazad, L/H of Late Sh. Jagbir, 99, Hiranki Village, Narela, Delhi Vs. Income Tax Officer, Ward-21(4), New Delhi

  Delhi Bench benchAY 2010-11Dismissed

• Saroj Gupta (legal representative of Shri Pawan Kumar Gupta) Vs DCIT, Central Circle-25, New Delhi

  Delhi Bench benchAY 2014-15, 2015-16, 2016-17, 2017-18, 2018-19, 2019-20, 2020-21Allowed

• Executor to Estate of Amirali J. Dossa v. ITO 23(1)(1)

  Mumbai bench