Bombay High Court
Late Mr Pratap Lalchand ShahversusIncome Tax Officer Ward 5(1)
- Decided
- Disposal
- Disposed Off
Holding
Notices issued under Sections 148 and 148A of the Income Tax Act in the name of a deceased taxpayer are non‑est and must be quashed.
Summary
The petitioner, Nilesh Pratap Sagalia, a legal heir of the deceased Mr. Pratap Lalchand Shah, filed a writ petition challenging a show‑cause notice, order and re‑assessment notice issued under Sections 148 and 148A of the Income Tax Act in the name of his deceased father for Assessment Year 2016‑17. The petitioner argued that the notices were invalid because they were served in the name of a dead person. The Revenue Department, through an Income Tax Officer, acknowledged the defect but indicated that the case could be re‑opened against the legal heir as the tax liability exceeded Rs 50 lakh. The High Court held that notices issued under Sections 148/148A in the name of a deceased taxpayer are non‑est and quashed the show‑cause notice, the order under Section 148A(d), the re‑assessment notice, the assessment order and the demand notice. The Court directed that the revenue may initiate fresh reassessment proceedings against the legal heir if permissible. The writ petition was allowed and disposed of accordingly.
Issues considered
- Whether a notice issued under Section 148 or 148A of the Income Tax Act in the name of a deceased person is valid.
- Whether the assessment and demand notices issued on the basis of such notices can be sustained.
- Whether the revenue may re‑open assessment proceedings against the legal heir of the deceased.
Legislation cited
- Constitution of India — s. Article 226
- Income Tax Act, 1961 — s. 147 r/w 144, 148, 148A(b), 148A(d), 156
Subjects
- Income Tax
- Re‑assessment
- Section 148
- Deceased taxpayer
- Legal heir
- Writ of Certiorari
- Article 226
- Non‑est notice
Judgment
12. WP 3672.2026.doc
Nilesh Pratap Sagalia Legal vs. IT Officer
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
WRIT PETITION NO. 3672 OF 2026
Nilesh Pratap Sagalia Legal Heir of
Late Mr. Pratap Lalchand Shah … Petitioner
V/s.
Income Tax Officer, Ward 5(1), Pune and Ors. … Respondents
_______________________________________
Mr. Bhuvanesh Kankani a/w. Mayur Suhas Garad for the Petitioner
Mr. Vikas Khanchandani for the Respondents
_______________________________________
CORAM : B.P. COLABAWALLA AND
FARHAN P. DUBASH, JJ.
DATE : 11th SEPTEMBER 2026
P.C. :
1. The above Writ Petition is filed seeking to quash and set aside the Show
Cause Notice dated 17th June 2021 issued under Section 148A(b) of the
Income Tax Act, 1961 (“the Act”), the impugned Order dated 20th July 2022
passed under Section 148A(d) of the Act and the impugned re-opening
Notice dated 20th July 2022 issued under Section 148 of the Act.
Additionally, the Assessment Order passed pursuant to the said Notice dated
3rd May 2023 and the impugned Demand Notice also of the same date issued
under Section 156 of the Act are also assailed.
Page 1 of 4
---------------------------------------
Order dated 11th September 2026
12. WP 3672.2026.doc
Nilesh Pratap Sagalia Legal vs. IT Officer
2. The Assessment Year in question is Assessment Year 2016-17. The principal
ground on which all these Notices and Orders are challenged is that initially
the Show Cause Notice as well as the Order passed under Section 148A(b) as
well as the impugned Notice under Section 148 of the Act were all issued in
the name of a dead person viz. Mr. Pratap Lalchand Shah (the father of the
Petitioner), who passed away on 25th September 2018.
3. After the aforesaid Petition was served upon the Respondent - Revenue, the
learned Counsel appearing on behalf of the Respondent – Revenue has
received written instructions from one Mr. Sanjeev Kumar Sharma, Income
Tax Officer (HQ) 3(2), Pune instructing the learned Advocate that in view of
the fact that Mr. Pratap Lalchand Shah had already expired by the time the
re-assessment proceedings were initiated, a request may be made to the High
Court to quash and set aside the current re-assessment proceedings. These
written instructions are tendered to the Court which are taken on record and
marked ‘X’ for identification. For the sake of convenience, the said
instructions are reproduced hereunder :-
Page 2 of 4
---------------------------------------
Order dated 11th September 2026
12. WP 3672.2026.doc
Nilesh Pratap Sagalia Legal vs. IT Officer
“To,
Adv. Vikas Khanchandani
Sr. Standing Counsel,
A-604, Garden Estates, Off Link Road,
Laxmi Nagar, Goregaon West, Mumbai – 400 104
Sir,
Sub: Directions in the case of Nilesh Pratap Sagalia as legal heir of deceased (his father)
Mr. Pratap Lalchand Shah for AY 2016-17 to 2018-19 in Writ Petitions filed
by the assessee and withdrawal of appeal filed before Hon’ble High Court-reg..
Ref.: Your E-mail dated 19/03/2026
*****
Kindly refer to the above.
02. As reported by the AO, proceedings u/s. 148 of the Act for all the AYs involved
were initiated in the name of the deceased person i.e. Mr. Pratap Lalchand Shah after his
death i.e. 25/09/2018 rather than in the name of his legal heir Mr. Nilesh Pratap Sagalia.
Therefore, in view of the present legal position, the notices issued u/s. 148 of the Act in the
name of a deceased person is non-est and therefore, the proceedings are not valid even
though the assessment is completed in the name of Nilesh Pratap Sagalia, legal heir of
Pratap Lalchand Shah.
03. However, the information received in these cases were consequent to a search &
seizure action in the case of Shri Renuka Mata Multi Urban Co-operative Credit Society
Ltd. Therefore, the case in the name of Nilesh Pratap Sagalia as legal heir of deceased (his
father) Mr. Pratap Lalchand Shah will be re-opened u/s 148 of the Act as the quantum is
more than 50 lacs for all the AYs.
03. In view of the above-mentioned facts, a request may be made to the Hon’ble HC to
be quash and set aside the current assessment proceedings.
Yours faithfully,
(Sanjeev Kumar Sharma)
Income Tax Officer (HQ) 3(2), Pune
O/o Pr. Commissioner of Income Tax-3, Pune.
Encl: A/a
Copy to:
1. The Addl.CIT, Range-5, Pune
2. The ITO, Ward-5(1), Pune
Income Tax Officer (HQ) 3(2), Pune
O/o Pr. Commissioner of Income Tax-3, Pune.”
Page 3 of 4
---------------------------------------
Order dated 11th September 2026
12. WP 3672.2026.doc
Nilesh Pratap Sagalia Legal vs. IT Officer
4. In light of the aforesaid letter, we allow the above Writ Petition in terms of
prayer Clause (a), which reads thus :-
“(a) that this Hon’ble Court be pleased to issue a Writ of Certiorari or any other
appropriate Writ, Order or Direction under the Article 226 of the Constitution of
India calling for all papers and proceedings of the Deceased’s case for the AY
2016-17; and after examining the validity, legality and propriety thereof quash,
cancel and set aside the Impugned Show Cause Notice under Section 148 of the
Act, dated 17th June 2021, Impugned Order under Section 148A(d) of the Act,
dated 20th July 2022, Impugned Notice under Section 148 of the Act, dated 20 th
July 2022, Impugned Assessment Order passed under Section 147 r/w. Section 144
of the Act on 3rd May 2023 and Impugned Demand Notice issued under Section
156 of the Act on 3rd May 2023, issued by Respondent No.1.”
5. The Respondent - Revenue is now free to take out appropriate proceedings
for re-assessment against the legal heirs of Mr. Pratap Lalchand Shah, if
otherwise permissible in law.
6. The Writ Petition is disposed of in the aforesaid terms. However, there shall
be no order as to costs.
7. This order will be digitally signed by the Private Secretary/Personal Assistant
of this Court. All concerned will act on production by fax or email of a
digitally signed copy of this order.
( FARHAN P. DUBASH, J. ) ( B. P. COLABAWALLA, J. )
Jyoti Pawar
Digitally
signed by
JYOTI
JYOTI PRAKASH
PRAKASH PAWAR
PAWAR Date:
2026.09.17
19:53:01
+0530
Page 4 of 4
---------------------------------------
Order dated 11th September 2026
Checking your session…
Lawyer court records for this case
Associated through the court’s case reference.