Legal heirs can be adjudicated for act or omission of deceased taxpayer

Last updated: 03 July 2024

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Quick Summary

The Madras High Court has ruled that tax authorities can pursue legal proceedings against the heirs of a deceased taxpayer for their actions or omissions. This decision came after orders were incorrectly issued to a taxpayer after their death. The court set aside these orders and clarified that the Revenue department is permitted to initiate proceedings against the legal heirs.

Court :
Madras High Court

Brief :
The Hon'ble Madras High Court in Munusamy Nagabushanam (deceased) v. The Deputy Commercial Tax Officer[W. P. Nos. 14718 & 14723 of 2024 dated June 13, 2024] set aside the order issued to the deceased person and held that Revenue department is left open to initiate proceedings against the legal heirs of the deceased taxpayer.

Citation :
W. P. Nos. 14718 & 14723 of 2024 dated June 13, 2024

The Hon'ble Madras High Court in Munusamy Nagabushanam (deceased) v. The Deputy Commercial Tax Officer[W. P. Nos. 14718 & 14723 of 2024 dated June 13, 2024] set aside the order issued to the deceased person and held that Revenue department is left open to initiate proceedings against the legal heirs of the deceased taxpayer.

Facts

Mr. Munusamy Nagabushanam died on May 08, 2021. However, the Revenue department served the show cause notice and assessment order after the date of death in the name of deceased.

One son of Late. Munusamy Nagabushanam filed writ petition before the Hon'ble Madras High court contending that impugned orders are not sustainable as the same are against a dead person.

Issue

Whether Revenue department can initiate proceedings against legal heirs of deceased taxpayer?

Held

Hon'ble Madras High Court in W. P. Nos. 14718 & 14723 of 2024 held that:

Noted that, all the relevant communications, including the impugned assessment orders issued by the Revenue authorities are of later date than the date of death of the taxpayer.
Set aside the impugned orders and stated that it is left open to the Revenue department to initiate proceedings against the legal heirs of the late Mr. Munusamy Nagabushanam.

OFFICIAL JUDGMENT COPY HAS BEEN ENCLOSED BELOW

FAQ :

Yes, the Madras High Court has confirmed that tax authorities can initiate proceedings against the legal heirs of a deceased taxpayer for their acts or omissions.

Tax assessment orders were issued to Mr. Munusamy Nagabushanam after his death. His son filed a petition, and the Madras High Court set aside these orders, stating that proceedings could be initiated against the legal heirs instead.

Mr. Munusamy Nagabushanam passed away on May 08, 2021.

Yes, if the taxpayer has died, tax proceedings can be initiated against their legal heirs for any acts or omissions.