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Facts
The original assessee, an elderly and paralytic individual, failed to respond to assessment and first appellate notices, leading to ex-parte proceedings. During the pendency of the first appeal, the assessee passed away on 07.01.2021, and the CIT(A) subsequently dismissed the appeal on merits. The legal heir filed the current appeal before the ITAT, explaining the circumstances.
Held
The Tribunal, considering the assessee's health condition and subsequent demise, found it appropriate to set aside the CIT(A)'s order. The case was restored to the Assessing Officer for a de novo assessment, providing the legal heir with a reasonable opportunity to make submissions in accordance with law. The assessee is directed to respond to the notice.
Key Issues
Whether ex-parte orders passed against a deceased assessee, who was incapacitated, should be set aside and the case remanded for a de novo assessment to provide a fair opportunity to the legal heir.
Sections Cited
Section 148, Section 142(1)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH “SMC”, DELHI
(A.Y.2010-11) Sanjay Malhotra, L/H of Banvesh Dutt Malhotra, 76-B, DDA Flats LIG, Rajouri Garden Extn., New Delhi 110027 ...... अपीलाथ�/Appellant PAN: AQDPM-7218-B बनाम Vs. Assistant Commissioner of Income Tax, Circle-43(1), Pratyaksh Kar Bhawan, Civic Centre, Block-E-2, Room 1807, Minto Road, ..... �ितवादी/Respondent New Delhi 110002 अपीलाथ� �ारा/ Appellant by : Shri V Rajkumar, Advocate �ितवादी�ारा/Respondent by : Shri Rajesh Tiwari, Sr. DR सुनवाई क� ितिथ/ Date of hearing : 09/12/2024 घोषणा क� ितिथ/ Date of pronouncement : : 09/12/2024 आदेश/ORDER
PER VIKAS AWASTHY, JM:
This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi (hereinafter referred to as 'the CIT(A)') dated 28.03.2024, for assessment year 2011-12.
Both sides heard, order of the authorities below examined. A perusal of the impugned order reveals that the CIT(A) had issued notices to the assessee on four occasions but there was no response from assessee’s side. The CIT(A) decided appeal of the assessee in an ex-parte proceedings on the basis of statement of facts furnished by the assessee along with appeal. A perusal of assessment order reveals that the assessee has not appeared before the Assessing Officer (AO) as well.
(AY 2010-11) Notice u/s. 148 of the Act dated 28.03.2018 was issued and served on the assessee through affixture. Subsequently notice u/s. 142(1) of the Act was issued to the assessee on 26.10.2018 and 06.11.2018, but there was no response from the assessee’s side.
3. The ld. Counsel for the assessee has submitted that the assessee was 75 years of age and was paralytic. Most of the time he was confined to bed. The son of assessee was residing in Muscat and on his visit to India in the month of June 2019, he came to know about the assessment order dated 08.12.2018. Immediately thereafter, an appeal before the CIT(A) was filed on 08.07.2019. During pendency of first appeal, the assessee Banvesh Dutt Malhotra died on 07.01.2021. The CIT(A) in an ex-parte proceedings condoned the delay but dismissed appeal on the merits. Instant appeal has been filed by legal heir of deceased Banvesh Dutt Malhotra. Considering facts of the case, I deem it appropriate to restore this appeal back to the AO for denovo assessment, after affording reasonable opportunity of making submissions to the assessee, in accordance with law.
The assessee is directed to respond to the notice served upon him, without fail.