Can the Income Tax Department issue a notice after a taxpayer's death? Allahabad HC answers

The Allahabad High Court ruled that an income tax reassessment notice issued after a taxpayer's death is legally invalid and void from the outset.

The court held that tax authorities cannot validate a notice addressed to a deceased person by later substituting the legal heir's name.

Under Section 159 of the Income-tax Act, proceedings validly initiated while the taxpayer was alive may continue against legal heirs after death.

The case involved a reassessment notice issued on 28 March 2025 to Sanjay Dubey, who died on 7 January 2024, relating to alleged unaccounted cash payments for a flat in Lucknow.

The court emphasized that to initiate reassessment after death, the notice must be issued directly to the legal representative within the limitation period.