MANGALABAI VIJAYKUMAR SAHUJI (DECEASED) THROUGH LEGAL HEIR (SON) RAHUL VIJAYKUMAR SAHUJI,AURANGABAD (CHHATRAPATI SAMBHAJINAGAR) vs. INCOME TAX OFFICER, AURANGABAD (CHHATRAPATI SAMBHAJINAGAR)

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ITA 2895/PUN/2025Status: DisposedITAT Pune19 January 2026AY 2017-18Bench: SHRI MANISH BORAD (Accountant Member)4 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal observed that the CIT(A) had dismissed the appeal ex-parte for non-compliance, partly due to the assessee's demise during the proceedings, and had not adjudicated the grounds raised by the legal heir. Considering the legal heir's contentions regarding the source of deposits and the procedural lapse, the Tribunal deemed it appropriate to restore all issues to the CIT(A)/NFAC for fresh adjudication and a speaking order under Section 250(6) of the Act.

What were the facts?

The assessee, Mangalabai Vijaykumar Sahuji (deceased), furnished her return for A.Y. 2017-18. The Assessing Officer made an addition of Rs. 45,00,000/-, assessing income at Rs. 51,36,660/-. The assessee filed an appeal before the Ld. CIT(A)/NFAC, but during the pendency of the appellate proceedings, she expired. Consequently, the Ld. CIT(A)/NFAC dismissed the appeal ex-parte for non-compliance, without addressing the merits.

What were the issues?

Whether the CIT(A) was justified in dismissing the appeal ex-parte for non-compliance after the assessee's death, and the merits of the Rs. 45,00,000/- addition made by the AO.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 143(2),Section 142(1),Section 250(6)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PUNE BENCH “SMC”, PUNE

Before: SHRI MANISH BORAD

For Appellant: Shri Pushpadant Vinod Sahuji (Virtual)
For Respondent: Shri Shashank Ojha (Virtual)
Hearing: 13.01.2026Pronounced: 19.01.2026

ORDER

PER MANISH BORAD, AM:

1.

This appeal filed at the instance of assessee is directed against the order of Ld. CIT(A)/NFAC dated 13.10.2025 which is arising out of the assessment order u/s 143(3) of the Act for Assessment Year 2017-18 framed on 24.12.2019 by the ITO, Ward- 1(11), Aurangabad.

2.

I note that the assessee has raised as many as 29 grounds of appeal raising various legal issues as well as grounds on merits against the additions made by the Assessing Officer. However, with the assistance of both the sides, I note that the assessee failed to file any submission before Ld. CIT(A)/NFAC, who has therefore proceeded ex-parte qua assessee and without dealing with the issues raised by the assessee has dismissed the assessee’s appeal.

3. Ld. counsel for the assessee as well as Ld. Departmental Representative has no objection if the issues raised in the instant appeal are restored to the file Ld. CIT(A)/NFAC for necessary adjudication.

4. I have heard rival contentions and perused the records placed before me. I observe that the assessee, an individual furnished his return of income for A.Y. 2017-18 on 03.08.2017 declaring income of Rs.6,36,660/-. Case selected for scrutiny through CASS followed by serving of statutory notices u/s 143(2) and 142(1) of the Act. Ld. Assessing Officer made addition of Rs.45,00,000/- after duly considering the submissions of assessee and assessed income of Rs.51,36,660/-. Thereafter, the assessee preferred appeal before Ld. CIT(A)/NFAC on 31.12.2019 but later on during the pendency of the appellate proceedings, during the Covid-19 Pandemic, the assessee expired on 14.05.2021. Due to this reason, there was no compliance before Ld. CIT(A)/NFAC and the appeal of the assessee has been dismissed for non-compliance.

5.

During the course of hearing before me, Ld. counsel for the assessee submitted that the information about the death of the assessee was given to Ld. Assessing Officer, however the impugned order has been passed in the name of deceased person.

6.

Further, I note that the legal heir of deceased assessee has raised multiple legal issues along with grounds against the impugned addition of Rs.45,00,000/- and it is also stated that the major source of alleged deposits are from the gift received from the assessee’s daughter in law Mrs. Komal Rahul Sahuji, funds received from cash sales as well as accumulated savings and cash withdrawal from bank. However, since Ld. CIT(A)/NFAC has not dealt with grounds of appeal raised by the assessee on account of non- compliance, I deem it appropriate to restore all the issues raised in the instant appeal to the file of Ld. CIT(A)/NFAC for necessary adjudication and to decide the appeal in accordance with law and pass a speaking order as contemplated u/s 250(6) of the Act. Needless to mention here that fair and proper opportunity shall be granted to the assessee. Effective grounds of appeal raised by the assessee in the instant appeal are allowed for statistical purposes.

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