Sanjeev Narula JUDGMENT
Manmohan, J.
1. Present writ petition had been filed seeking a direction to the respondent to quash the notice dated 31st March, 2019 issued to the deceased-assessee (father of the petitioner) under Section 148 of the Income Tax Act, 1961 (hereinafter referred to as "the Act, 1961") and all the consequential proceedings emanating therefrom including orders dated 21st November, 2019 and 27th December, 2019 passed by the respondent.
FACTS
2. The relevant facts of the present case are that an information was received by the Assessing Officer that in Financial Year 2011-12, the assessee - Shri Mohinder Paul Kapila had cash deposits of Rupees Ten Lakhs (Rs. 10,00,000/-) in his bank account, time deposits of Rupees Eleven Lakhs Five Thousand Five Hundred Eighty Six (Rs. 11,05,586/-) and receipts of Rupees Twenty Five Thousand Four Hundred Fourteen (Rs. 25,414/-) as per Form 26AS. It was noticed that no return had been filed and the source of the aforesaid deposits and receipts remained unexplained and had escaped assessment. Accordingly, the case of Mr. Mohinder Paul Kapila was selected under Section 147/148 of the Act 1961, after recording of reasons and approval of PCIT-15, Delhi on 28th March, 2019.
3. However, late Shri Mohinder Paul Kapila (hereinafter referred to as "deceased-assessee") had already expired on 21st December, 2018. The deceased assessee is survived by two sons and two daughters.
4. Notice dated 31st March, 2019 under Section 148 of the Act 1961 for A.Y. 2012-2013 was issued, i.e. on the last date of limitation, in the name of deceased assessee Shri Mohinder Paul Kapila with PAN: ASXPK1666P and sent at his last known address known to the Income Tax Department i.e. Flat No. 286, 1st Floor, D Flats, Sector 9, Pkt-1, Dwarka, New Delhi 110075. The impugned notice could not and was never served upon Late Shri Mohinder Paul Kapila. Thereafter ACIT, Circle 43(1), Delhi (hereinafter referred to as "Assessing Officer") issued notices dated 22nd August, 2019, 27th August, 2019 & 18th September, 2019 to the deceased assessee. The said notices were also neither served upon the assessee nor upon any of his legal heirs.
5. On 10th October, 2019, a show-cause notice was issued to the deceased Assessee to explain why penalty under Section 271(1)(b) of the Act 1961 should not be imposed for failure to comply with notice issued under Section 142(1) of the Act 1961.
6. Pursuant to another notice issued under Section 133(6) of the Act, 1961, to the banks of the deceased assessee, it was revealed to the Income Tax Department that the same address of Dwarka was mentioned in the KYC and further from the documents made available by the banks a telephone number was traced and the phone call was made to the present Petitioner i.e., Savita Kapila who for the first time informed that she is the daughter of the Assessee and that the Assessee had passed away on 21st December, 2018. Admittedly, for the first time the death certificate confirming the above was uploaded by the Petitioner on the E-Portal of the Income Tax Department on 15th October, 2019.
7. Assessing Officer passed an order dated 21st November, 2019, whereby penalty u/s. 271(1)(b) of the Act, 1961 was imposed upon deceased-assessee through legal heir........