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Facts
The assessment was framed ex parte against the deceased assessee who had not filed her return of income. An addition of Rs. 2,59,37,160/- was made as unexplained income based on substantial cash deposits. The assessee's legal heirs filed an amended appeal after her demise, explaining her non-appearance was due to genuine and unavoidable circumstances.
Held
The Tribunal found that the non-appearance before the lower authorities was not willful and was due to genuine reasons. Therefore, in the interest of justice, the matter was restored to the Assessing Officer for a de novo assessment.
Key Issues
Whether the ex-parte assessment order and appellate order should be set aside due to the assessee's genuine non-compliance and granted a fresh opportunity for assessment.
Sections Cited
69A
AI-generated summary — verify with the full judgment below
िनधा"रती की ओर से/Assessee by : Shri B.M. Monga, Advocate, and Shri Rohit Kaura, Advocate राज" की ओर से/ Revenue by : Dr. Ranjit Kaur, Addl. CIT, Sr. DR (Virtual Mode) सुनवाई की तारीख/Date of Hearing : 24/06/2025 उदघोषणा की तारीख/Date of Pronouncement : 24/06/2025 आदेश/Order PER LALIET KUMAR, J.M: This is an appeal filed by the Assessee against the order of the Ld. CIT(A)/NFAC, Delhi dt. 14/08/2023 pertaining to Assessment Year 2015-16.
Briefly the facts of the case are that the assessment in this case was framed ex parte against Late Smt. Sukhwinder Kaur, who had not filed her return of income for the relevant year. Based on information relating to substantial cash deposits in her bank accounts, the case was reopened and addition of Rs. 2,59,37,160/- was made under section 69A of the Act, treating the deposits as unexplained income.
Against the order of the AO the assessee went in appeal before the Ld. CIT(A) who has also decided ex parte due to continued non-compliance.
Against the order of the Ld. CIT(A) the assessee had preferred an appeal before the Tribunal, challenging the order passed by the CIT(A) confirming the addition made under section 69A of the Act. During the pendency of the appeal, the assessee unfortunately passed away. Pursuant to her demise, the legal heirs of the assessee have filed an amended Form No. 36 before this Tribunal, bringing themselves on record. Along with the amended form, an affidavit executed by the deceased assessee during her lifetime has also been placed on record, wherein she explained the reasons for her non-appearance before the lower authorities. It was stated that she was primarily an agriculturalist residing in a rural area and that the email ID used for service of statutory notices belonged to her son, who is settled abroad and was unaware of the proceedings. These facts, as brought on record by the legal representatives, indicate that the earlier non-compliance was not deliberate but due to genuine and unavoidable circumstances.
4.1 It was submitted that the non-appearance before the lower authorities was not willful. The deceased assessee had executed an affidavit during her lifetime, explaining that she was an agriculturalist and resided in a rural area. Further, it was contended that the email address on which the statutory notices were sent belonged to her son, who is permanently settled abroad and had no occasion to receive or act on such notices. Thus, the explanation for non-compliance was bona fide and supported by material evidence. 4.2 It was further submitted that there was a plausible and sufficient cause for non-appearance both at the assessment stage and in appellate proceedings, and the matter deserves to be restored to the file of the Assessing Officer for proper examination after affording due opportunity.
The ld. DR opposed the prayer but could not rebut the factual submissions made by the legal representative of the deceased assessee.
We have heard the rival contentions and perused the records. It is undisputed that both the assessment order and the appellate order were passed ex parte. In the interests of justice, and considering that the assessee had expressed her desire to explain the matter during her lifetime and her legal representative has now undertaken to cooperate with the proceedings, we find it just and proper to set aside the orders of the lower authorities. 6.1. Accordingly, we restore the matter back to the file of the Assessing Officer for a de novo assessment after giving due opportunity to the legal representative of the deceased assessee to furnish evidence and explanation in respect of the credit entries and cash deposits. 6.2. The assessee is directed to fully cooperate with the Assessing Officer and not seek unnecessary adjournments. The Assessing Officer shall also provide adequate opportunity to rebut the findings recorded earlier.
In the result, the appeal is allowed for statistical purposes.