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Facts
The assessee, Late Ravi Nandan Kr. Sinha, was in the business of supplying goods. The Assessing Officer initiated reassessment proceedings under section 148/147/144 of the Income Tax Act based on information suggesting payments were received without actual supply of goods. The assessee failed to file returns, and the assessment was completed ex-parte.
Held
The Tribunal observed that the original assessee was not adequately represented, and the assessment order was ex-parte due to lack of proper representation and the subsequent demise of the assessee. Considering the principles of natural justice, and the willingness of the legal heir (Smt. Alka Sinha) to present documents, the Tribunal found merit in granting a final opportunity.
Key Issues
Whether the assessee should be granted a fresh opportunity to present evidence and documents before the Assessing Officer/CIT(A) due to ex-parte assessment and the demise of the original assessee, considering principles of natural justice.
Sections Cited
144, 147, 148, 271(1)(c)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “PATNA BENCH, PATNA
Before: Shri Sonjoy Sarma & Shri Sanjay Awasthi
IN THE INCOME TAX APPELLATE TRIBUNAL “PATNA BENCH, PATNA VIRTUAL HEARING AT KOLKATA
Before Shri Sonjoy Sarma, Judicial Member and Shri Sanjay Awasthi, Accountant Member I.T.A. Nos.168, 169, 170,171/Pat/2014 Assessment Years: 1992-93, 1993-94, 1994-95, 1995-96 Ravi Nandan Kumar Sinha…….…………….....………………....Appellant Prop. M/s A. Traders, ‘Satyam Shivam’ Road No.1, North Patel Nagar, Patna-800023. [PAN: AFYPS6290M] vs. DCIT, C.C-5, Patna……..…….........................................…..…..... Respondent I.T.A. Nos.249, 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…….…………….....………………....Appellant Prop. M/s A. Traders, ‘Satyam Shivam’ Road No.1, North Patel Nagar, Patna-800023. [PAN: AFYPS6290M] vs. DCIT, C.C-5, Patna……..…….........................................…..…..... Respondent Appearances by: Shri Praphull Kumar Sinha, Advocate, appeared on behalf of the appellant. Shri Rinku Singh, CIT, appeared on behalf of the Respondent. Date of concluding the hearing : April 16, 2025 Date of pronouncing the order : April 21, 2025 आदेश / ORDER Per Bench: These captioned appeals have been filed by Smt. Alka Sinha, wife and legal heir of the assessee namely Late Ravi Nandan Kr. Sinha
I.T.A. Nos.168, 169, 170,171/Pat/2014 Assessment Years: 1992-93, 1993-94, 1994-95, 1995-96 I.T.A. Nos.249, 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
against separate orders of the Commissioner of Income Tax (Appeals) [hereinafter referred to as ‘CIT(A)’] passed u/s 144/147 & I.T.A. Nos.168, 169, 170,171/Pat/2014 passed u/s 271(1)(c) of the Income Tax Act (hereinafter referred to as the ‘Act’). During the pendency of the appeals, the assessee namely Ravi Nandan Kr. Sinha was passed away and fresh Form No.36 was filed by her wife namely Smt. Alka Sinha against the order of the CIT(A), Patna relating to the above captioned assessment years. Since, the facts and issues involved in all the appeals are common and identical except different assessment years and quantum involved, therefore, we heard all these appeals together and dispose of by this common order for the sake of clarify and convenience. We take ITA No.256/Pat/2006 for the assessment year 1991-92 is taken as the lead case and the findings therein shall be applied mutatis mutandis to the remaining all connected appeals.
Brief facts of the case are that the assessee, late Ravi Nandan Kr. Sinha was engaged in the business of supplying goods to the government of Bihar. It came to light on the basis of information received from the Director of Investigation, Ranchi & Patna that the assessee has allegedly received certain payments without actually supplying goods to the Bihar government. Based on this information, the Assessing Officer issued notice u/s 148 of the Act for the assessment year under consideration. Despite issuance of notices u/s 148 and 142(1) of the Act, no return was filed by the assessee. However, the ld. AR appeared before the Assessing Officer and filed a photocopy of intimation u/s 148(1)(a) to show that the return was filed. The Assessing Officer thereafter completed the assessment u/s 144/147 of
I.T.A. Nos.168, 169, 170,171/Pat/2014 Assessment Years: 1992-93, 1993-94, 1994-95, 1995-96 I.T.A. Nos.249, 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
the Act. In this assessment, the Assessing Officer treated the receipts from the government department as income without corresponding expenditure and made the addition accordingly including a payment of Rs.6,97,408/- from the Animal Husbandry Department, Govt. of Bihar during the financial year 1990-91 for which no actual supply of goods were made.
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 I.T.A. Nos.168, 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.
I.T.A. Nos.168, 169, 170,171/Pat/2014 Assessment Years: 1992-93, 1993-94, 1994-95, 1995-96 I.T.A. Nos.249, 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
The contents of the affidavit filed by the legal heir of the assessee is as under:
I.T.A. Nos.168, 169, 170,171/Pat/2014 Assessment Years: 1992-93, 1993-94, 1994-95, 1995-96 I.T.A. Nos.249, 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
I.T.A. Nos.168, 169, 170,171/Pat/2014 Assessment Years: 1992-93, 1993-94, 1994-95, 1995-96 I.T.A. Nos.249, 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
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:
I.T.A. Nos.168, 169, 170,171/Pat/2014 Assessment Years: 1992-93, 1993-94, 1994-95, 1995-96 I.T.A. Nos.249, 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
I.T.A. Nos.168, 169, 170,171/Pat/2014 Assessment Years: 1992-93, 1993-94, 1994-95, 1995-96 I.T.A. Nos.249, 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
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 I.T.A. Nos.249, 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 I.T.A. Nos.249, 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.
Kolkata, the 21st April, 2025.
Sd/- Sd/- [Sanjay Awasthi] [Sonjoy Sarma] Accountant Member Judicial Member
Dated: 21.04.2025. RS Copy of the order forwarded to: 1. Ravi Nandan Kumar Sinha 2. DCIT, C.C-5, Patna 3.CIT (A)- 4. CIT- , 5. CIT(DR),
//True copy// By order Assistant Registrar, Kolkata Benches