16 September 2013
SIR MY CLIENT HAD RECEIVED NOTICE U/S 148 IN APRIL-2012. AFTER ISSUING NOTICE U/S 148 BUT BEFORE ASSESSMENT / PROCEEDINGS START, MY CLIENT EXPIRED ON JULY-2013.
CAN ASSESSMSNT BE DROPPED ? OR ASEESMSNT CAN BE CONTINUED TO WHOM ? FAMILY MEMBERS CONSIST OF ONLY HIS WIFE NOW.
04 August 2024
If your client, who received a notice under Section 148 of the Income Tax Act, passed away before the assessment proceedings were concluded, there are specific steps and procedures to follow. Here’s a detailed explanation and the approach to handle the situation:
### **1. Continuation of Assessment Proceedings**
**a. Legal Heir or Representative**: The income tax proceedings can be continued with the legal heir or the representative of the deceased. The legal heir or representative is generally the spouse, children, or any other individual legally entitled to manage the deceased’s estate.
- **Notification to Income Tax Department**: The legal heir or representative needs to inform the Income Tax Department about the death of the taxpayer. They should provide the necessary documents to prove their status as the legal heir (e.g., death certificate, legal heir certificate, etc.).
**b. Assessment Procedure**: The assessing officer will proceed with the assessment as per the normal procedure, but the notices and correspondence will now be addressed to the legal heir or representative.
### **2. Dropping the Assessment**
The assessment cannot be dropped solely due to the taxpayer's death. However, if the income that has escaped assessment is not part of the deceased's estate, the proceedings can be addressed with the legal heir.
**3. Specific Circulars and Notifications**
While there may not be specific circulars addressing every detail of this situation, the following points provide relevant guidance:
- **Circular No. 14(XL-35)**, dated April 11, 1955, from the CBDT, states that when a taxpayer dies, the legal representatives are responsible for tax liabilities. - **Section 159** of the Income Tax Act specifies that the legal representative of a deceased person shall be liable to pay the tax due from the deceased.
### **Steps to Take:**
1. **Contact the Assessing Officer**: The legal heir or representative should contact the assessing officer and inform them of the taxpayer’s death.
2. **Submit Documentation**: Provide the death certificate and any legal documents proving the representative’s authority to act on behalf of the deceased.
3. **Respond to Notices**: Respond to the notice under Section 148, addressing the correspondence to the legal heir. The legal heir can either request to drop the proceedings if the income in question is irrelevant to the deceased's estate or proceed with providing the necessary details for the assessment.
4. **File for Relief**: If the legal heir wishes to contest or drop the proceedings, they can file a formal application explaining the situation, citing the death of the taxpayer.
By following these steps and ensuring all proper documentation is provided, the legal heir can manage the tax matters of the deceased effectively.
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