LATE SHRI LAL SINGH LH SHRI NARENDER,GURUGRAM vs. ITO WARD-2(1), GURUGRAM

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ITA 1265/DEL/2024Status: HeardITAT Delhi20 June 2024AY 2012-13Bench: SHRI PRADIP KUMAR KEDIA (Accountant Member)3 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the ex-parte appellate order, holding it was contrary to the Act and prejudiced the legal heir. The matter was remanded to the CIT(A) for fresh adjudication after bringing the legal heir on record and providing proper opportunity.

What were the facts?

The assessee died in 2020, but the first appellate order was passed ex-parte in 2024 in the name of the deceased. The legal heir challenged this, arguing it violated natural justice principles.

What were the issues?

Validity of an ex-parte appellate order passed in the name of a deceased assessee; whether such an order should be set aside and remanded for fresh adjudication.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 147

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “SMC” DELHI

Before: SHRI PRADIP KUMAR KEDIA

For Respondent: Shri Om Prakash, Sr.DR

PER PRADIP KUMAR KEDIA - A.M.: The captioned appeal has been filed by the assessee against the order of the Commissioner of Income Tax (Appeals)- ADDL/JCIT(A)-1, Delhi [‘CIT(A)’ in short] dated 24.01.2024 arising from the assessment order dated 16.12.2019 passed by the Assessing Officer (AO) under Section 143(3) r.w. Section 147 of the Income Tax Act, 1961 (the Act) concerning A.Y. 2012-13.

2.

As per the grounds of appeal, the assessee has challenged the ex-parte order passed by the CIT(A) and endorsement of the additions / disallowances made in assessment order.

3.

When the matter was called for hearing, the ld. counsel for the assessee submitted at the outset that the assessment order was passed on 16.12.2019. The assessee died on 20.07.2020. The first appellate order was passed on 24.01.2024. At the time of passing the first appellate order, the assessee was no more. The first appellate order was however passed in the name of the deceased- assessee. The legal heir Shri Narender has been brought on record in February, 2024. The ld. counsel thus submitted that ex-parte order in the circumstances is opposed to the principle of natural justice and therefore, deserves to be set aside and an opportunity should be given afresh to the legal heir of the assessee to address the First Appellate Authority on different aspects of the case.

4.

The ld. DR for the Revenue submitted that it is left to the wisdom of the Tribunal to decide the issue as deemed expedient.

5.

I have carefully considered the submissions made on behalf of the assessee and perused the case records.

6.

In the circumstances where the assessee has died before passing of the first appellate order, the first appellate order drawn in the name of deceased assessee is contrary to the scheme of the Act. The ex-parte order is also unjust and unfair in the circumstances resulting in grave prejudice to the survivor / heir of the assessee.

7.

Hence, without going into the merits of the case, the first appellate order is set aside and restored to the file of the CIT(A). The assessee shall be at liberty to address all the issues connected to the appeal and adduce such evidences as he may rely upon in support of his plea before the CIT(A). The legal heir shall be taken on record by the CIT(A). The CIT(A) shall adjudicate the issues involved afresh in accordance with law after giving proper opportunity to the assessee.

8.

In the result, the appeal of the assessee is allowed for statistical purposes.

Order was dictated and pronounced in the open Court on 20th June, 2024.

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