RAM PARSHAD SHARMA THROUGH L/H MANU SHARMA,MOHALLA NAGAR, RAJWAL vs. ITO WARD , DASUYA

The Learned AR submitted that assessee Shri Ram Parshad Sharma had expired on 14-08-2024, but the fact of his death was not intimated by the legal heir before the Learned CITA. Hence, the Learned CITA had passed an order on 20-5-2025 in the name of the deceased. The assessee was an individual and an agriculturist deriving income principally from agricultural operations. Since he had only exempt agricultural income and in the absence of any taxable income, no return of income was filed. During the year under consideration, cash aggregating to Rs. 12,55,000 was deposited in the assessee's bank account maintained with Oriental Bank of Commerce. Before the Learned AO, due to serious medical condition of the assessee, no effective compliance could be made, which compelled the Learned AO to frame the assessment ex parte under section 144 of the Act on 16-12-2019 after making additions on account of cash deposits in the sum of Rs. 12,50,000 as unexplained cash under section 69A of the Act ; and making estimated addition towards household expenditure in the sum of Rs. 1,50,000 under 3 1024/Asr/2025 section 69C of the Act in addition to adding the interest income of Rs. 24,345/-.

The assessee preferred an appeal before the Learned CITA on 16-1-2020. During the first appellate proceedings, the source of cash deposits was sought to be explained out of sale of a portion of the ancestral land vide two separate sale deeds dated 26-10-2016 for Rs. 5,90,000 and Rs. 6,40,000 and out of past savings in the sum of Rs. 20,000. The assessee also enclosed the registered sale deed copies before the Learned CITA. The Learned AR placed on record the screenshot of the e-filing portal which specifically reflects uploading of the written submissions along with the copies of the sale deeds and the cash transaction report together with bank statement of Oriental Bank of Commerce and the medical treatment records. Hence, the observation made by the Learned CITA that no sale deeds were furnished by the assessee is factually incorrect. During the course of first appellate proceedings, the Learned CITA sought for a remand report from the Learned AO.

The remand proceedings stood initiated in the month of June 2024, which was just few months before the demise of Shri Ram Parshad Sharma. Owing to his continuing and deteriorating medical condition, the assessee could not respond to the communication of 4 1024/Asr/2025 the Learned AO in the remand proceedings, which led the Learned AO to record non-compliance in the remand proceedings also. Hence, it could be seen that the documents furnished by the assessee in the e- filing portal were not subjected to verification by both the authorities below. Hence, in the interest of justice and fair play, we deem it fit and appropriate to restore this appeal to the file of Learned AO for de novo adjudication in accordance with law after considering all the documents that are already uploaded in the e-filing portal. The assessee is directed to cooperate with the Learned AO for expeditious disposal of the set-aside assessment proceedings by not taking unwarranted adjournments except due to exceptional or bona fide circumstances. With these observations, the grounds raised by the assessee are allowed for statistical purposes.

In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 30.07.2026. (U. DASGUPTA ) ACCOUNTANT MEMBER Dated : 30.07.2026 Rkk

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