SURESH KUMAR MAHAWAR,BALASORE vs. ITO WARD-1, BALASORE, BALASORE

It was submitted by the ld. AR that the assessee Suresh Kumar Mahawar died on 15.11.2016 and Smt. Radhadevi Mahawar, wife of the deceased assessee, deposited Rs.2,50,000/- on 21.11.2016 and Rs.19,28,000/- on 29.11.2016 in her bank account maintained with State Bank of India, Soro Branch bearing Account No.11248821297. It was the submission that the said account was joint account between Suresh Kumar Mahawar and Smt. Radhadevi Mahawar. It was the submission that Shri Suresh Kumar Mahawar died on 15.11.2015 relevant to the assessment year 2016-2017. It was further submission that Smt. Radhadevi Mahawar, wife of deceased assessee, had deposited cash 2017-2018. The ld. AR placed before me a copy of the Death Certificate of Suresh Kumar Mahawar at page 24 of the paper book, which is as follows :-

It was the submission that the AO issued notice u/s.142(1) of the Act on the deceased Suresh Kumar Mahawar on the ground that cash has been deposited in his bank account and as there was no return filed by Shri Suresh Kumar Mahawar, completed the assessment ex-parte. It was the submission that the assessee Suresh Kumar Mahawar having died on 15.11.2015 and the bank account having been operated by Smt Radhadevi Mahawar and Smt. Radhadevi having filed her return of income disclosing the said bank account and the transaction therein for the relevant assessment year, the assessment on the deceased Suresh Kumar Mahawar was invalid. It was the submission that Suresh Kumar Mahawar having died on 15.11.2015 as the legal heir Smt. Radhadevi Mahawar had filed return of income for Shri Suresh Kumar Mahawar for 2016-2017 on 30.11.2016 and it was specifically mentioned in the return also that she is filing return as a legal heir. It was further submitted that Smt. Radhadevi Mahawar had also filed her own return for the assessment year 2016-2017 and the assessment u/s.143(3) of the Act had also been done on her. It was the submission that the return disclosing the entire transaction by Smt. Radhadevi Mahawar for the assessment year 2017-2018 was filed on 01.08.2017. The disclosure is shown in D-21 of the return of income filed, extract of which is as follows :-

After receipt of the return from Smt. Radhadevi Mahawar, notice u/s.142(1) of the Act had been issued on 30.12.2017. It was the submission that the AO was also the same. It was the submission that assessment made on Suresh Kumar Mahawar, the deceased assessee, is liable to be annulled.

In reply, ld. Sr. DR submitted that Section 159 of the Act will apply in the case of the assessee and the assessment should be considered as legal representative. Ld. Sr. DR also vehemently supported the order of the ld. AO & ld. CIT(A). 6. I have considered the rival submissions. The submission of the ld. Sr. DR that provision of Section 159 of the Act applies, does not support the facts in the present case, insofar as Smt. Radhadevi Mahawar herself has filed her return in her individual capacity for the relevant assessment year much before the notice issued on the deceased assessee. The deceased assessee is not alive even for one day during the relevant assessment year. A cash deposit in the bank account of the assessee and which has been offered by Smt. Radhadevi Mahawar cannot be shifted from a live person to a deceased assessee just because he was one of the joint holders of the account. This being so, as the assessment u/s.144 of the Act has been done for the assessment year 2017-2018 on the deceased person, the said assessment order passed u/s.144 of the Act in the name of deceased Suresh Kumar Mahawar on 29.10.2019, stands annulled.

In the result, appeal of the assessee is allowed.