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Facts
The appeal was filed by the legal heir of the deceased assessee against the order of the CIT(A) which confirmed additions made by the AO under section 144/147 of the Income Tax Act. The original assessee expired during the pendency of the appeal before the CIT(A). The assessee's legal heir claimed that due to the illness of the assessee and his father, proper submissions could not be made during assessment and appellate proceedings.
Held
The Tribunal set aside the order of the CIT(A) and directed a de novo adjudication, instructing the CIT(A) to implead the legal heir on record and provide an opportunity of hearing. The grounds of appeal were allowed for statistical purposes.
Key Issues
Whether the CIT(A) erred in dismissing the appeal ex-parte without properly impleading the legal heir after the assessee's death and without providing adequate opportunity of hearing.
Sections Cited
147, 144, 250, 69A
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Income Tax Appellate Tribunal, PUNE BENCHES “SMC” :: PUNE
Before: DR.DIPAK P. RIPOTE & SHRI VINAY BHAMORE
ORDER
PER DR. DIPAK P. RIPOTE, AM:
This is an appeal filed by Shri Shashikant Patil as Legal Heir of Late Bhauso Gunda Patil against the order of ld.Commissioner of Income Tax(Appeal)[[NFAC], passed under section 250 of the Income Tax Act, 1961 for the A.Y.2012-13 dated 26.10.2023, emanating from order u/s.144 of the Income Tax Act, 1961, dated 28.11.2019. The Assessee has raised following grounds of appeal :
“1. On the facts and in the circumstances of the case and in law the lower authorities have erred in dismissing the appeal ex parte without giving proper opportunity of hearing and the Act being in violation of principle of natural justice, it is prayed that appeal may kindly be restored back to lower authorities (A.O.) for readjudication/reconsideration.
Learned CIT [Appeals] has erred in fact in confirming the addition made by AO u/s 69A of Rs. 29,12,437 as unexplained money despite the fact that the appellant has withdrawn the amount of agricultural income from his Sangli DCC bank account and redeposited the same in his other bank account and made the investment and appellant has all the evidences are fully verifiable.
Appellant craves leave to add additional ground of appeal
or amend /alter any of the above ground of appeal.”
2. At the outset of hearing, no one appeared on behalf of the Assessee. No adjournment letter was filed.
Findings & Analysis : 3. We have heard ld.DR for the Revenue and perused the records. In this case, an order u/s.144 r.w.s 147 of the Income Tax Act, 1961 for A.Y.2012-13 was passed on 28.11.2019 in the case of Bhauso Gunda Patil. The Assessing Officer has initiated proceedings based on the information regarding cash deposits of Rs.16,90,000/- with Bharti Sahakari Bank Limited. Assessing Officer(AO) passed the assessment order, assessing the income at Rs.30,58,330/-. Aggrieved by the assessment order, Assessee filed appeal before ld.CIT(A) who confirmed the addition as Assessee could not file any details.
On perusal of the Affidavit of Mr.ShashikantBhauso Patil, it is noted that Assessee Bhauso Gunda Patil expired on “02.07.2020”. Mr.ShashikantBhauso Patil is son of “Late Bhauso Gunda Patil”. In the Affidavit, he submitted that due to illness of his father, the Chartered Accountant could not file replies to the notices issued by ld.CIT(A).
4.1 It is noted that ld.CIT(A) has passed order u/s.250 of the Income Tax Act, 1961 in the name of Bhauso Gunda Patil on 26.10.2023. However, Late Bhauso Gunda Patil expired on 02.07.2020. Therefore, it was mandatory for ld.CIT(A) to bring the Legal Heir on record. It is also noted that ld.CIT(A) has not adjudicated the grounds of appeal raised by the Assessee which is mandatory for ld.CIT(A).
4.2 It is also noted that assessment order is u/s.144 of the Act. It has been submitted by the Legal Heir of the Assessee that due to illness of the Assessee, Late Bhauso Gunda Patil, they could not file proper submission during assessment proceedings.
4.3 In these facts and circumstances of the case, we set-aside the order of ld.CIT(A) to ld.CIT(A) for denovo adjudication. We direct the ld.CIT(A) to bring Legal Heir on record. The ld.CIT(A) shall provide the opportunity to the Assessee. The Assessee shall file necessary details before the ld.CIT(A). Accordingly, Grounds of appeal raised by the assessee are allowed for statistical purpose.
In the result, appeal of the assessee is allowed for statistical purpose.