RAVI NANDAN KR. SINHA,PATNA vs. DCIT, C.CIRCLE-5, PATNA

The assessee filed an appeal before the ld. CIT(A) who confirmed the addition and upheld the order of the Assessing Officer.

Subsequently, the assessee filed second appeal before this Tribunal. During the pendency of this appeal, it was brought to the notice of the Tribunal that Ravi Nandan Kr. Sinha has passed away 13.09.2023 and an application was moved by his wife as a legal heir i.e. Smt. Alka Sinha for substitution her name in place of her husband in the pending appeal. It was also submitted by her that due to demise of her husband, the records and documents were not fully traceable, therefore, she was unable to furnish the documentary evidence in connection with the case. She also pleaded for one more opportunity which may be given in order to substantiate her deceased husband’s case and requested that the matter may be remanded to the file of the Assessing Officer for fresh examination. It is also pertinent to note that the penalty proceedings u/s 271(1)(c) of the Act for appeals in 169, 170,171/Pat/2014 for Assessment Years 1992-93, 1993- 94, 1994-95, 1995-96, which arose from the quantum of the additions as made by the Assessing Officer and sustained by the ld. CIT(A) and the assessee has challenged those orders before this Tribunal as well.

At the time of hearing, the ld. AR appearing for the legal heir of the assessee has submitted that the assessment had been made ex parte due to non-availability of the records and non-compliance by the previous counsel. He also pleaded that in the interests of justice, an opportunity may be granted to the assessee to place supporting documents before the Assessing Officer. He further stated that the additions were made without giving proper opportunity to the assessee and without conclusive evidence to submit against the charge of bogus receipts as alleged in the assessment order.

On the other hand, the ld. DR strongly objected to the prayer made by the assessee and submitted that the assessment order is pertaining to the party as far as back 1991-92 and that the assessee has neither complied with the statutory notice in order to pay the tax due, despite substantial additions were made in all the years. It was urged that the matter not to be remanded as this belated stage. The ld. DR also furnished a detailed report in connection with the above case furnished by the ld. CIT(DR), Patna in the following manner:

We, after hearing the rival submissions and perusing the materials available on record, observe that the assessment in question was completed u/s 147 r.w.s 144 of the Act owing to non-compliance with the notice issued by the Assessing Officer. The assessment was I.T.A. Nos.168, 169, 170,171/Pat/2014 Assessment Years: 1992-93, 1993-94, 1994-95, 1995-96 250, 251, 252, 253, 254, 255, 256/Pat/2006 Assessment Years: 1992-93, 1993-94, 1994-95, 1995-96, 1996-97, 1997-98, 1998-99, 1991-92 Ravi Nandan Kumar Sinha based on information gathered by the Investigation Wing for alleged receipts of payment without actual supplying of goods. After considering the facts, we find merit in the submissions of the legal heir of the assessee as no opportunity was given at all to present supporting evidences before the Assessing Officer or the ld. CIT(A) primarily due to lack of proper representation and subsequent demise of the assessee. It is also evidence from the record that the original assessee namely late Ravi Nandan Kr. Sinha was not represented adequately and assessment order was ex parte. Further, in consideration of principles of natural justice and fair play and taking into consideration that the present legal heir namely Smt. Alka Sinha has come forward and showed her willingness to present the requisite documents in support of her claim, we are of the considered opinion that final opportunity should be provided to the assessee to substantiate the case. Therefore, in the interests of justice to the parties and materials/documents in question in both quantum and penalty proceedings, we restore all the matters to the file of the ld. CIT(A) for fresh adjudication. The ld. CIT(A) shall afford reasonable opportunity to the legal heir of the assessee to produce all documents and evidences seeks to rely upon. The ld. CIT(A) shall also examine the matter afresh not influenced by any earlier order and to pass a reasoned and speaking order.

In view of the above, the impugned order passed by the ld. CIT(A) for the relevant assessment year is hereby set aside and the matter is restored to the file of the ld. CIT(A) for de novo adjudication in accordance with law after affording due opportunity to the legal heir of the deceased assessee. The assessee is also directed to represent the I.T.A. Nos.168, 169, 170,171/Pat/2014 Assessment Years: 1992-93, 1993-94, 1994-95, 1995-96 250, 251, 252, 253, 254, 255, 256/Pat/2006 Assessment Years: 1992-93, 1993-94, 1994-95, 1995-96, 1996-97, 1997-98, 1998-99, 1991-92 Ravi Nandan Kumar Sinha case as and when notice will be served by the ld. CIT(A) without any failed.

In the result, all the captioned appeals of the assessee including quantum and penalty are allowed for statistical purposes.