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148 Notice binding on legal heirs ?

Satish Tanaji Jadhav (Articles Clerak) (46 Points)

08 August 2018

If assessee died on 8.8.2017 and notice of escaped assessment issued on 26.3.2018 (for A.Y.2011-12) on such dead person. and no fresh notice was issued on legal heirs. In such case, such notice binding on deceased legal heirs ? is such notice barred by limitation ?

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10 Replies

Ruchika Somani (Coaching and Practice in Tax Audit Law.) (4429 Points)
Replied 08 August 2018

I think yes,

Legal heirs are responsible to inform department about death and respond on requirements asked in notice

1 Like

Satish Tanaji Jadhav (Articles Clerak) (46 Points)
Replied 08 August 2018

but is not mandatory to inform the same to department.

Ruchika Somani (Coaching and Practice in Tax Audit Law.) (4429 Points)
Replied 08 August 2018

It is mandatory and responsibility of person receiving notice to inform department

Satish Tanaji Jadhav (Articles Clerak) (46 Points)
Replied 08 August 2018

actually, notice of 148 required to be issued within time limit i.e. on or before 31.3.2018 on the legal heirs. but in this case, notice to such deceased person. how legal heirs will proceed for the same without issuing fresh notice within time limit on them ?

Ruchika Somani (Coaching and Practice in Tax Audit Law.) (4429 Points)
Replied 08 August 2018

Just write a letter to department specifying death of assessee and xyz being legal heir thereafter department will proceed and send notice accordingly

1 Like

Satish Tanaji Jadhav (Articles Clerak) (46 Points)
Replied 08 August 2018

but.... in that case notice will be time barred. its cannot issued after 31.3.2018

Ruchika Somani (Coaching and Practice in Tax Audit Law.) (4429 Points)
Replied 08 August 2018

Still its Assessees or Legal heirs responsibility to inform department when they realise their mistake simple

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CA ABHAY GUPTA (Practice) (3230 Points)
Replied 08 August 2018

reference to the case ITO vs Sikander Lal Jain
if the notice is issued in the name of dead person, but served on all the legal heirs, the notice cannot be regarded to be invalid one.

1 Like

Hitendra Rajput (8 Points)
Replied 08 August 2018

How could department come to know about the demise of the assessee until the same has been informed. But after the reciept of the notice the department would pursue the case with the legal heir/s in a similar way as it would have been pursuing with the assessee. If at the end some tax demand comes out then the legal heir/s will be responsible to pay the same to the extent they have been benefitted in the capacity of the legal heir/s of the deceased.

Satish Tanaji Jadhav (Articles Clerak) (46 Points)
Replied 09 August 2018

Abhay Gupta sir. you rightly said. but in this case notice of 148 issued in the name of demise person. if they want to issue notice in name of legal heirs, its required to be issue within time limit i.e. on or before 31.3.2018. hence, I think notice is barred by limitation.