HC Sets Aside Proceedings Initiated Against Deceased Taxpayer

The petitioner, being the legal heir of the deceased assessee, informed the Income Tax Department about the death of the assessee, who had passed away on 15.03.2024. The petitioner was duly registered as a legal heir on the income tax portal and had filed the return of income for A.Y. 2024–25 in that capacity, which was also processed under Section 143(1).

Despite being informed about the death during earlier assessment proceedings and through subsequent communications, the Assessing Officer issued a notice under Section 143(2) dated 28.06.2025 and further proceedings under Section 142(1) in the name of the deceased assessee. Aggrieved by such action, the petitioner approached the High Court challenging the validity of the notice.

Main Issue: Whether assessment proceedings initiated in the name of a deceased assessee are valid in law.

HC Ruling: The Gujarat High Court held that the impugned notice issued under Section 143(2) in the name of a deceased person is invalid and unsustainable in law. It observed that the fact of death had already been brought to the notice of the department, and the petitioner was duly recognized as the legal heir.

The Court noted that despite clear intimation, the department proceeded to issue notice against the deceased assessee, which is impermissible. Such proceedings cannot be sustained as they are fundamentally flawed. Accordingly, the impugned notice was quashed and set aside. However, the Court granted liberty to the revenue to initiate fresh proceedings in accordance with law, if permissible.

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