Income Tax Notice to Deceased Person Legal Remedy
Income tax notice to deceased person lacks valid initiation
An income tax notice to deceased person cannot validly begin reassessment where the foundational notice was issued after death. In Rajkumar Harlalka, legal heir of Late Balkrishna Sohanlal Harlalka v. ITO, Ward-17(2)(1), Mumbai and others, Writ Petition No. 3461 of 2026, decided on 29 August 2026, the Bombay High Court treated this as a jurisdictional defect.
The Department could not cure the invalid initiation merely by bringing the legal heir on record later. Participation by the legal representative also did not create jurisdiction where the original proceeding was void.
What Section 159 actually permits
Section 159 of the Income-tax Act, 1961 deals with assessment and liability through a legal representative.
It permits a valid proceeding commenced during the taxpayer’s lifetime to continue against the legal representative from the stage existing on the date of death. It also permits a proceeding that could have been taken against the deceased, had the person survived, to be taken against the legal representative.
The statutory distinction is important. It does not authorise the Department to initiate a proceeding after death in the deceased person’s name and then correct the identity later.
Why the defect is more than a spelling mistake
A procedural error may sometimes be corrected. A jurisdictional error concerns the authority to begin the proceeding itself.
For reassessment under Sections 148 and 148A, the statutory notice and opportunity must be given to the person recognised by law. If the taxpayer was already dead, the notice should be addressed to the proper legal representative after completing the required legal steps.
The case therefore reinforces the need to test a notice on two levels:
• merits: whether the alleged escaped income is factually correct; and
• jurisdiction: whether the correct authority followed the correct statutory process against the correct person within limitation.
What a legal heir should do immediately
An invalid notice should not be ignored. Before replying, the legal heir may review the income-tax scrutiny and reassessment process and should:
1. Compare the date of death with the date of the notice and earlier proceeding.
2. Preserve the death certificate and proof of legal-heir status.
3. Identify whether the proceeding began during the assessee’s lifetime.
4. Inform the jurisdictional authority and e-filing helpdesk of the death.
5. Complete legal-heir registration on the e-filing portal where required.
6. File a preliminary jurisdictional objection without making unnecessary admissions on merits.
7. Request copies of the approval, underlying information and notices.
8. Check limitation independently.
9. Preserve evidence of every portal response and communication.
10. Obtain advice on whether a writ petition, statutory response or appeal is appropriate.
Participation does not always waive the objection
The Revenue argued that the legal heir had responded and received an opportunity of hearing. The High Court rejected the suggestion that participation could validate a proceeding that lacked jurisdiction at inception.
Even so, a response should expressly reserve the jurisdictional objection. The language should be careful: the legal heir is informing the Department and protecting the estate, not conceding that a notice issued to the deceased was valid.
TaxParley’s analysis of Section 147A reassessment notices provides related guidance on reviewing reassessment jurisdiction. Depending on the procedural stage, assistance may be taken for tax litigation, income-tax notice response, CA support for notices in Dwarka or filing an appeal against the order.
Key takeaway
Section 159 enables lawful assessment of income attributable to a deceased person through the legal representative. It does not rescue an income tax notice to deceased person where reassessment was initiated after death. Legal heirs should respond promptly, preserve the jurisdictional objection and avoid treating the notice as a routine compliance request. The related TaxParley article on Section 270AA immunity may assist where penalty strategy later arises.
Frequently asked questions
Is every income tax notice issued after a taxpayer’s death void
The answer depends on when the proceeding validly began and to whom the notice was addressed. A proceeding validly commenced during life may continue against the legal representative under Section 159.
Should a legal heir ignore a notice issued in the deceased person’s name
No. The legal heir should promptly inform the Department, preserve the death certificate and legal-heir documents and raise the jurisdictional objection without unnecessary admissions.
Can participation by the legal heir validate the original notice
Participation does not necessarily cure a jurisdictional defect. The response should expressly reserve the objection and deal with merits only as professionally advised.