02 Jul Madras High Court Decision on Tax Assessments: Munusamy Nagabushanam Case
Case Reference: Munusamy Nagabushanam (deceased) v. The Deputy Commercial Tax Officer
Writ Petition Nos.: W. P. Nos. 14718 & 14723 of 2024
Date of Judgment: June 13, 2024
Court: Hon’ble Madras High Court
Introduction:
In the case of Munusamy Nagabushanam (deceased) v. The Deputy Commercial Tax Officer, the Hon’ble Madras High Court addressed the issue of whether the Revenue department can proceed with tax assessments against the legal heirs of a deceased taxpayer.
Facts of the Case:
Mr. Munusamy Nagabushanam passed away on May 08, 2021. Despite his death, the Revenue department issued a show cause notice and assessment order in his name posthumously.
Issue:
Whether the Revenue department is legally entitled to initiate proceedings against the legal heirs of a deceased taxpayer.
Held:
The Hon’ble Madras High Court, in Writ Petition Nos. 14718 & 14723 of 2024:
- Noted that all communications, including the impugned assessment orders, were issued after the date of the taxpayer’s death.
- Set aside the impugned orders on the basis that they were unsustainable as they pertained to a deceased individual.
- Clarified that the Revenue department is permitted to initiate proceedings against the legal heirs of the late Mr. Munusamy Nagabushanam.
This ruling underscores the legal principle that while direct actions against deceased individuals are invalid, subsequent actions against their legal heirs remain permissible under law.
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