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Facts
The assessee filed an appeal against the CIT(A) order for assessment year 2011-12. The assessee had claimed HRA deduction, but failed to provide supporting documentary evidence, leading to its disallowance by the AO. The CIT(A) upheld this disallowance while deleting another addition.
Held
The Tribunal noted that the assessee passed away and legal heirs were not traceable. Due to the inability to present any details regarding the HRA claim's admissibility, the disallowance made by the lower authorities was upheld.
Key Issues
Whether the disallowance of HRA deduction can be upheld when the assessee is deceased and no evidence could be produced by legal representatives.
Sections Cited
159
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DIVISION BENCH, ‘B’ CHANDIGARH
Before: SHRI RAJPAL YADAV & SHRI MANOJ KUMAR AGGARWAL
Assessee by : None Revenue by : Shri Vivek Vardhan, Addl. CIT, Sr.DR Date of Hearing : 08.04.2025 Date of Pronouncement : 14.05.2025 PHYSICAL HEARING O R D E R PER RAJPAL YADAV, VP The assessee is in appeal against the order of the ld. Commissioner of Income Tax (Appeals) [in short ‘the CIT (A)’] dated 22.01.2019 passed for assessment year 2011-12.
This appeal was originally filed at Pune Benches. Later on, it has been transferred to ITAT Chandigarh by the Hon'ble President on the request of the assessee. A.Y.2011-12 2
In response to notice of hearing, no one has come present on behalf of the assessee. The ld. Counsel for the assessee has sent a letter through e-mail, which read as under :
PAN - AILPM3306J Fri, Mar 07,2025 11.10 AM From : aasawabrothersgroup@gmial.com To : ITAT, Chandigarh Benches <chandi.bench@itat.nic.in> Respected Sir, I, Someshwar Dineshji Aasawa (authorised representative), on behalf of Mr. Ankush Mehta would like to withdraw my appeal before your honor on the demise of my client Mr. Ankush Mehta and the appellant's legal heir are not traceable. Requesting you to please withdraw my appeal. Someshwar Dineshji Aasawa 4. The appeal is on the board since 30.09.2019. It has been adjourned time to time. A perusal of the record would indicate that assessee has filed his return of income on 12.07.2011 declaring total income of Rs.11,53,290/-. The assessee has claimed deduction of HRA amounting to Rs.1,10,882/-. Ld. AO has apprised the assessee to produce documentary evidence for claiming this deduction but assessee did not submit anything. Accordingly, ld. AO has disallowed this claim of the assessee. A.Y.2011-12 3
Dissatisfied with the above, assessee carried the matter in appeal before the CIT(A) but did not prosecute the appeal. The CIT(A) has deleted the addition of Rs.50,000/- which was added by the AO on earning of estimated interest income but upheld the disallowance of HRA as a deduction.
Against this order of the CIT(A), assessee has come up in appeal but failed to submit anything, more so his counsel has apprised us that assessee has died and he does not have any details of the Legal Representatives.
Under these compelling circumstances, we have to decide the appeal since assessee could not submit any detail before both the lower authorities demonstrating the fact as to how HRA is admissible to the assessee as deduction.
Hence, this addition is upheld.
6.1 The ld. AO is reminded about Section 159 of the Act which contemplates that if any recovery is to be made from the legal heirs, then such recovery could only be made to the extent of assets being inherited by the legal heirs from an assessee. In other words, if any demand is required to A.Y.2011-12 4 be recovered from the legal heirs of the assessee, then that should only be enforced against a legal heir who has inherited the property of the assessee. Otherwise demand could not be recovered. Ordered accordingly,
In the result, appeal of the assessee is dismissed.