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Facts
The appeal for AY 2007-08 was filed against the CIT(A)-NFAC order, which affirmed the AO's actions including proceedings under section 148/147 and a section 68 addition of Rs.1,44,63,000/-. The original assessee, Sh. Opender Gupta, was non-cooperative and passed away on March 21, 2024, shortly after the CIT(A) order. His legal heir, Sh. Varun Gupta, filed the current appeal.
Held
The Tribunal inferred that the deceased assessee was prevented by circumstances beyond his control from appearing in lower appellate proceedings. Therefore, the case was restored to the CIT(A)-NFAC for fresh adjudication on merits, subject to the appellant, Sh. Varun Gupta, first proving his status as the legal representative.
Key Issues
Whether the CIT(A) order confirming the AO's additions should be upheld given the original assessee's death and non-cooperation; and whether the legal heir can proceed with the appeal without first proving his representative status.
Sections Cited
144 of the Income-tax Act, 1961, 148 of the Income-tax Act, 1961, 147 of the Income-tax Act, 1961, 68 of the Income-tax Act, 1961, 2(29) of the Income-tax Act, 1961, 2(11) of the Code of Civil Procedure, 1908
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH: ‘E’ NEW DELHI
Before: SHRI SATBEER SINGH GODARA & SHRI M. BALAGANESH
This assessee’s appeal for assessment year 2007-08, arises against the Commissioner of Income Tax (Appeals)-National Faceless Appeal Centre [in short, the “CIT(A)-NFAC”], Delhi’s DIN and order no. ITBA/NFAC/S/250/2023-24/1062899230(1) dated 19.03.2024 involving proceedings under section 144 of the Income- tax Act, 1961 (hereinafter referred to as ‘the Act’).
Case called twice. None appears at the assessee’s behest. We accordingly proceeded ex-parte against him.
It emerges during the course of hearing that the CIT(A)- NFAC’s herein has affirmed the Assessing Officer’s action both in taking recourse of section 148/147 proceedings as well as making section 68 unexplained cash deposit’s addition amounting to Rs.1,44,63,000/- in the order dated 29.12.2009.
Learned Departmental Representative vehemently contends that the assessee has been all along non-cooperative, which has made both the lower authorities to proceed ex-parte against him.
A perusal of the case file indicates that the assessee herein, namely, Sh. Opender Gupta has left for his heavenly abode on 21st March, 2024 i.e. within two days of the CIT(A)-NFAC having passed the impugned lower appellate order on 19.03.2024. It is in this factual backdrop that the appellant herein, namely, Sh. Varun Gupta has filed the instant appeal claiming himself as the legal heir of the deceased assessee.
That being the case, the only inference which arises herein is that the deceased assessee was prevented on account of circumstances beyond his control in appearing in the lower appellate proceedings. We thus deem it as a fit case to be restored back to the CIT(A)-NFAC for its afresh appropriate adjudication as per law subject to a rider that the appellant herein Sh. Varun Gupta shall first prove himself as the deceased assessee’s legal representative in the light of section 2(29) of the Act read with section 2(11) of the Code of Civil Procedure, 1908 and thereafter only, the lower appeal herein shall be adjudicated on merits.