**In a recent judgment, the Karnataka High Court emphasized the legal repercussions of an assessee’s demise during income tax assessment proceedings. The Bench, presided by Justice S Sunil Dutt Yadav, observed that an assessment order passed against a deceased person under Section 147 read with Section 144 of the Income Tax Act is inherently null and void.
The case stemmed from the legal representative of the deceased assessee challenging various tax-related orders and notices, including the assessment order, computation sheets, demand notices, and penalty orders, as well as orders and notices under Sections 148A(d) and 148 of the Act. The petitioner also sought the unfreezing of accounts as a consequential relief.
Notably, the assessee passed away while the assessment proceedings were ongoing, leading to the issuance of the assessment order against the deceased individual. The Court, in line with Section 159(2)(a) of the Act, emphasized the continuation of proceedings through legal representatives upon an assessee’s demise. Consequently, the Court set aside the assessment order, computation sheet, demand notice, demand proceedings, penalty proceedings, and the order freezing the bank account. The case was remitted to the stage following the notice issued under Section 148 of the Act, with instructions for the Revenue to proceed in accordance with Section 159(2)(a) of the Act.
Furthermore, the Court granted the petitioner liberty to file a reply to the notice issued under Section 148 of the Act, following the necessary procedural steps undertaken by the Revenue. This judgment sheds light on the intricate legal provisions governing income tax assessment proceedings in the event of an assessee’s demise.**