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Facts
The assessee, Shri Sasmit Vyas, expired during the assessment proceedings. His legal heir, Ms. Anshu Vyas, was unable to make adequate representation before the AO and CIT(A), leading to ex-parte orders. Similar issues arose in penalty appeals linked to the main appeals.
Held
The Tribunal acknowledged the principle of natural justice and the inability of the legal heir to represent the deceased assessee adequately. Consequently, the Tribunal remanded the assessment and penalty appeals back to the AO for fresh adjudication, providing an opportunity for the assessee to be heard.
Key Issues
Whether ex-parte assessment and penalty orders passed due to the assessee's demise and the legal heir's inability to represent are sustainable, and if the matters should be remanded for fresh adjudication.
Sections Cited
147, 144, 144B, 271(1)(c)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, INDORE BENCH, INDORE
Before: SHRI B.M. BIYANI & SHRI PARESH M. JOSHI
आदेश/ O R D E R
Per Bench:
This bunch of five (5) appeals, consisting of three (3) appeals by assessee and two (2) appeals by revenue, is being disposed by this common order
Late Shri Sasmit Vyas to 265/Ind/2025 & ITANo.152 & 159/Ind/2025 – A.Y. 2013-14 to 15-16 & 2014-15 & 2015-16 since the parties and learned Representatives are same and the underlying facts/issues are also identical.
The assessee “Shri Sasmit Vyas” has expired on 02.06.2021 and these matters are being pursued by deceased assessee’s wife & legal heir “Ms. Anshu Vyas”. Accordingly, the case titles are suitably modified in database and corrected titles as mentioned above are taken.
Assessee’s appeals (ITA No. 263 to 265/Ind/2025):
These are three (3) Quantum-Appeals directed against three (3) separate orders of first-appeals, all dated 30.12.2024 and passed by learned Commissioner of Income-tax (Appeals)-National Faceless Appeal Centre, Delhi [“CIT(A)”], which in turn arise out of respective three (3) assessment-orders dated 16.03.2022 and passed by National Faceless Assessment Centre, Delhi [“AO”] u/s 147 r.w.s. 144 & 144B of the Income- tax Act, 1961 [“Act”], for three (3) Assessment Years 2013-14 to 2015-16.
Ld. AR for assessee referred assessment-orders and pointed out that the AO initiated proceedings u/s 147 vide notices dated 30.03.2021 but thereafter the assessee “Shri Sasmit Vyas” expired on 02.06.2021 and the representation could not have been made before AO which has led the AO to pass ex-parte assessment-orders. Further, although the legal heir “Ms.
Anshu Vyas” somehow filed first appeals before CIT(A) but was unable to make representation which led the CIT(A) to pass ex-parte orders and Page 2 of 5
Late Shri Sasmit Vyas to 265/Ind/2025 & ITANo.152 & 159/Ind/2025 – A.Y. 2013-14 to 15-16 & 2014-15 & 2015-16 dismissed assessee’s first appeals. Ld. AR submitted that the legal heir is a lady and she has compiled necessary details/documents with sincere efforts and ready to represent these matters before AO so that cases of her late husband can be appropriately settled. With folded hands, Ld. AR prayed that in the interest of justice these matters may be restored at the level of AO to enable the legal heir to make representation.
Ld. DR for revenue agrees with the submission and prayer of Ld. AR but makes a request to direct the assessee to make representation before AO without seeking unnecessary adjournments.
Considering above submissions of parties and having regard to the principle of natural justice and also bearing in mind that no prejudice would be caused to revenue if these cases are restored at the level of AO, we remand these matters back to the file of AO for adjudication afresh. The AO shall give necessary opportunity of hearings to assessee and pass appropriate orders uninfluenced by his earlier orders. The assessee is also directed to remain vigilant and ensure participation in the hearings as may be fixed by AO and do not seek unnecessary adjournments failing which the AO shall be at liberty to pass appropriate order in accordance with law.
Ordered accordingly.
Late Shri Sasmit Vyas to 265/Ind/2025 & ITANo.152 & 159/Ind/2025 – A.Y. 2013-14 to 15-16 & 2014-15 & 2015-16 Revenue’s appeals (ITA No. 152 & 159/Ind/2025):
These are two (2) Penalty-Appeals directed against two (2) separate orders of first-appeals, both dated 30.12.2024 and passed by learned Commissioner of Income-tax (Appeals)-National Faceless Appeal Centre, Delhi [“CIT(A)”], which in turn arise out of respective two (2) penalty- orders dated 15.09.2022 and passed by ITO-4(3), Indore [“AO”] u/s 271(1)(c) of the Income-tax Act, 1961 [“Act”], for two (2) Assessment Years 2014-15 & 2015-16.
Learned Representatives of both sides are ad idem that these appeals involve penalties u/s 271(1)(c) which are dependent on outcome of Quantum-Appeals. Since the Quantum-Appeals are being remanded to AO in earlier part of this order, these matters must also be remanded to AO for adjudication afresh after considering outcome of Quantum-Appeals and also considering submissions of assessee. We accept submissions and accordingly remand these matters to the file of AO for a fresh adjudication after considering outcome of Quantum-Appeals and also considering submissions of assessee.
Late Shri Sasmit Vyas to 265/Ind/2025 & ITANo.152 & 159/Ind/2025 – A.Y. 2013-14 to 15-16 & 2014-15 & 2015-16
Resultantly, these appeals are allowed for statistical purposes.
Order pronounced in open court on 03/12/2025