SHARADAMMA,HASSAN vs. THE INCOME TAX OFFICER WARD-1, HASSAN, HASSAN

ITA 208/BANG/2026Status: DisposedITAT Bangalore21 September 2026AY 2014-158 pages
AI SummaryAllowed

What were the facts?

The Assessing Officer (AO) initiated proceedings against an alleged Association of Persons (AOP) of Basavegowda and Venkatesh based on a joint savings bank account. Despite repeated objections from Mr. Venkatesh stating no such AOP existed and that the account was for villagers' funds, the AO proceeded ex-parte, allotting a PAN to the alleged AOP and assessing interest income.

What did the Tribunal hold?

The Tribunal held that the AO failed to provide any evidence of a voluntarily formed AOP with a common purpose. Furthermore, since one of the alleged members, Basavegowda, had expired before the assessment order was passed, the existence of the AOP was invalid.

What were the issues?

Whether an Association of Persons (AOP) was validly constituted and whether the assessment made in the name of a non-existent or defunct AOP is sustainable.

Which sections of the Income-tax Act were involved?

Section 142(1),Section 148,Section 144,Section 2(31)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, BANGALORE BENCHES, BANGALORE

Before: SHRI BALAKRISHNAN S. & SHRI SOUNDARARAJAN K.

For Respondent: Shri Balusamy N., JCIT – DR

PER SHRI SOUNDARARAJAN K., JUDICIAL MEMBER:

This is an appeal filed by the assessee challenging the order of the NFAC, Delhi dated 16/11/2025 in respect of the A.Y. 2014-15. 1 Smt. Sharadamma

2.

The brief facts of the case are that the AO based on the information available with him, had found that assessee has maintained a savings bank account jointly with one Shri Venkatesh in the Kaveri Grameena Bank. Therefore, a notice u/s. 142(1) was issued on 29/03/2016 cal

The order continues below.

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