MEENA RANI KHATANA,HISAR vs. ITO WARD - 1, HISAR

PDF · subscribers
ITA 250/DEL/2021Status: DisposedITAT Delhi28 September 2021AY 2009-104 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal restored the issue to the AO to decide afresh after identifying the legal heir and providing an opportunity of hearing. The AO was also directed to provide the reasons for reopening the assessment.

What were the facts?

The assessment for AY 2009-10 was framed in the name of a deceased person. The assessee's son attended some proceedings, but the Assessing Officer (AO) was not informed of the demise. The CIT(A) dismissed the appeal for non-appearance.

What were the issues?

Whether assessment proceedings initiated and completed on a deceased person are valid. Whether the assessee was denied a proper opportunity of hearing.

Which sections of the Income-tax Act were involved?

Section 147,Section 148,Section 144

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’, NEW DELHI

Before: SH. N. K. BILLAIYA

For Appellant: Shri V. Raj Kumar, Advocate
Hearing: 28/09/2021Pronounced: 28/09/2021
1.

This appeal by the assessee is preferred against the order of the CIT(A), Hisar dated 29.07.2020 pertaining to A.Y. 2009-10 2. The grievance of the assessee read as under :- That on the facts and in the circumstances of the case and in law, the Ld. CIT(Appeals) erred in dismissing the appeal of the assessee without providing reasonable, proper and due opportunity of hearing;

2.

That on the the authorities below erred in i. initiating proceedings u/s 147/148 of the Act without there being any valid reason leading to belief of escapement of income ii. framing assessment u/s 147/144 of the Act without serving valid notice u/s 147 on the legal heir and also not providing reasons recorded leading to belief of escapement of income ; iii. framing assessment u/s 144 r.w.s. 147 of the Act on a dead person; iv. making the addition of Rs. 13,12,500/- on account of entire amount of cash deposits in the bank treating the same as undisclosed income of the The above actions being arbitrary, fallacious, unlawful and untenable must be quashed with directions for appropriate relief.

3.

At the very outset the counsel stated that the assessment has been framed in the name of a dead person when the bench asked the Counsel whether the AO was informed about the demise of Sh. Dayanand Khatana the counsel could not give any plausible reply.

4.

I have carefully perused the assessment order, though the proceedings were attended by the son of the assessee but the AO was never informed about the demise of the assessee and infact the son took adjournment and thereafter none attended the assessment proceedings. The AO was left with no choice but to frame an exparte order u/s. 144 of the Act. I find that before the CIT(A) also none attended and the CIT(A) dismissed the appeal of the assessee in limine.

5.

With the consent of the counsel and the DR I restore the entire issue to the files of the AO. The AO is directed to decide the issue afresh after bringing on record the legal heir of the assessee and after giving an sufficient opportunity of being heard of the assessee. The AO is further directed to give the copy of the reasons recorded for reopening of the assessment.

6.

In the result, the appeal filed by the assessee is allowed for statistical purpose.

7.

Decision announced in the open court in the presence of both the representatives on 28.09.2021.

More judgments on Section 147

All 49,210 judgments and leading authorities on Section 147 →

Recent GST High Court judgments

Search GST case law →