LATE SURESH COLVALCAR, L/H RAJESH SURESH COLVALKAR,MAPUSA vs. ACIT, CIRCLE - 2(1), PANAJI

At the time of hearing, the Ld.AR brought to the knowledge of the Bench, that there is a delay of 69 days in filing the appeal before the Hon’ble Tribunal and the assessee has filed an affidavit for condonation of delay. On considering the facts and information mentioned in the affidavit there is a reasonable cause explained and the Ld. DR has no specific objections. Accordingly, the delay is condoned and appeals are admitted and heard.

The brief facts of the case are that, the assessee has not filed the return of income for the A.Y. 2017-18 and subsequently the manual return of income was filed by the legal heir of the assessee on 26.04.2019. The Assessing Officer (A.O) has issued notice u/sec 142(1) of the Act to substantiate the claims in the return of income filed with documentary evidences and to explain the sources of cash deposits aggregating to Rs.1,57,55,859/- made in the nine bank accounts maintained by the assessee in F.Y.2016-17 and there was no compliance. Subsequently the legal heir of the assessee has filed a letter on12.07.2019 mentioning that the assessee was carrying on wholesale trading of pharmaceutical products. Whereas the A.O. has issued notice u/sec133(6) of the Act on the banks and obtained the bank statements and a show cause notice was issued to explain the sources of cash deposited in the bank accounts and the legal heir has filed a letter dated 24.12.2019. But the A.O was not satisfied with the explanations and invoked the provisions of Section 144 of the Act and made an addition of unexplained money u/sec69A of the Act and assessed the total income of Rs. 2,18,69,820/- and passed the order u/sec 144 of the Act dated 31.12.2019. 4. Aggrieved by the order, the assessee has filed an appeal with the CIT(A). Whereas the CIT(A) has considered the grounds of appeal, statement of facts, submissions of the assessee and finding of the AO. Further the CIT(A) has observed that since the assessment was completed u/sec144 of the Act and relied on the provisions of section 251(1)(a) of the Act and has set-aside the assessment order and restore the issues to the file of the assessing officer for fresh adjudication. Aggrieved by the order of the CIT(A), the assessee has filed an appeal before the Hon'ble Tribunal. 5. At the time of hearing, the Ld.AR submitted that the CIT(A) has erred in restoring the issues to the file of the assessing officer for fresh adjudication and has not adjudicated the additional ground of appeal, were the assessing officer has passed the order on the deceased person. Further the Ld.AR mentioned that the assesse has a good case on merits and shall substantiate with the material evidences and prayed for an opportunity to explain before the first appellate authority. Per Contra, the Ld.DR supported the order of the CIT(A). 6. We heard the rival submissions and perused the material on record. Prima-facie the CIT(A) has passed the order considering the fact that the assessment was completed u/sec144 of the Act and relied on the provisions of section 251(1)(a) of the Act and set-aside the assessment order and restore the issues to the file of the assessing officer for fresh adjudication. Whereas the Ld.AR submitted that the CIT(A) has not adjudicated the additional ground of appeal were the assessing officer has passed the order on deceased person in the assessment proceedings and the Ld.AR referred to the e-acknowledgement of evidence of additional ground of appeal filed with the CIT(A). Further the assessee has raised grounds of appeal challenging the addition,legal issues and non adjudication of additional ground of appeal by the CIT(A). Therefore, considering the facts, circumstances, submissions and principles of natural justice, we shall provide with one more opportunity of hearing to the assessee to substantiate the legal ground of validity of assessment proceedings were the Assessing officer has passed the assessment order in the name of the deceased person . Accordingly, we set aside the order of the CIT(A) and remit the entire disputed issues to the file of the CIT(A) to adjudicate afresh and pass a speaking order. The assesse should be provided adequate opportunity of hearing and shall cooperate in submitting the information for early disposal of appeal. And we allow the grounds of appeal of the assessee for statistical purpose. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on the day of 04th June, 2026. Sd/- Sd/- MANISH BORAD PAVAN KUMAR GADALE (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) Puneदिन ांक / Dated: 04th June, 2026. Abhishek mohan आिेशकीप्रतितितिअग्रेतिि / Copy of the Order forwarded to : अिीि र्थी / The Appellant. 1. प्रत्यर्थी / The Respondent. 2. 3. The Pr. CIT concerned. 4. तिभ गीय प्रतितनति,आयकर अिीिीय अतिकरण, “DB”बेंच, पणजी/ DR, ITAT, “DB” Bench, Panaji. ग र्डफ़ इि / Guard File. 5. //TRUE COPY// आिेश नुस र / BY ORDER,