Delhi High Court Sets Aside Income Tax Assessment Order For Failure To Include All Legal Heirs Of Deceased Assessee
The Delhi High Court recently in a Writ Petition set aside the impugned assessment order passed by the Income Tax Department significantly on the reasoning for not directing the said tax assessment to be carried on all the legal heirs of the deceased/Assessee but singularly the Petitioner.
The Bench in its order observed that "As noted above, deceased/assessee had more than one legal heir, which includes petitioner nos. 2 and 3. Given this position, Mr Sunil Agarwal cannot but accept that the assessment order could not have been directed only against Darpan Kohli i.e., petitioner no.1"
The Division Bench of Justice Rajiv Shakdher and Justice Girish Kathpalia were dealing with a matter assailing notice dated April 6, 2021, issued by the Income Tax department under Section 148 of the Income Tax Act, 1961 wherein the Respondent solely addressed the order to Darpan Kohli being the son of the Deceased Kuldip Kohli, leaving behind others who were the surviving family members of the deceased/assessee.
Senior Advocate M Sufian Siddiqui appeared for the Petitioners while Senior Advocate Sunil Agarwal appeared for the Income Tax Department. The Petitioners argued that after the demise of the deceased/assessee i.e., Mr. Kuldip Kohli, the Respondent errored in initiating proceedings by way of directing Reassessment notice in the name of the deceased/Assessee to the Petitioner without covering all the legal heirs on record.
In view of the above, the Court categorically observed that the Respondent was aware of the factum of death of Mr. Kuldip Kohli and that the proceeding had been attended by Petitioner no.1, i.e., Mr Darpan Kohli and as it appeared that since this fact came to the knowledge of the Respondent, the impugned assessment order, although addressed to the deceased/assessee, adverted to one of the legal heirs, i.e., Darpan Kohli/petitioner no.1.
Accordingly, the Court set aside the assessment order and directed the AO to pass a speaking Order.
Cause Title: Darpan Kohli & Ors. v. Assistant Commissioner of Income Tax