Jayesh Dadia - Chartered Accountant

Jayesh Dadia inputs on Tax planning

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I have received a notice for reopening of assessment of my mother for the assessment year 2017-18. My mother has already passed away. Should I attend to the notice or ignore it? If the assessing officer determines a demand, post reassessment, can the same be recovered from me since I am the legal heir?

It is a settled law that assessment cannot be made in the name of an assessee who has already died. You can, therefore, inform the assessing officer who has issued the notice that the assessee, who is your mother, has already expired. If the assessing officer still makes the assessment order in your mother’s name, the assessment order would be bad in law and would be quashed by the appellate authorities. The correct procedure is that after knowing the assessee is dead the assessing officer can issue a notice in the name of the legal heir and the said notice would be a valid notice.

Therefore, you being a legal heir must respond to the notice and file various documents and information required for the purpose of assessment. If any additions are made in the assessment order, the same can be challenged before the appellate authorities where you may succeed on merits. If ultimately you lose before the appellate authorities, then the demand can be recovered from you by treating you as the assessee in default. However, you can still challenge the recovery procedure if you can prove that you have not inherited any assets from your mother.