KUSUM GEORGE JACOB,BHOPAL vs. ITO - 2(1) BHOPAL, AAYKAR BHAWAN, HOSHANGABAD
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Income Tax Appellate Tribunal, INDORE BENCH, INDORE
Before: SHRI B.M. BIYANI & SHRI PARESH M. JOSHI
आदेश/ O R D E R
Per B.M. Biyani, A.M.:
Feeling aggrieved by order of first appeal dated 18.06.2024 passed by learned Commissioner of Income-Tax (Appeals)-NFAC, Delhi [“CIT(A)”] which in turn arises out of assessment-order dated 12.12.2019 passed by learned ITO-2(1), Bhopal [“AO”] u/s 147/144 of Income-tax Act, 1961 [“the Act”] for Assessment-Year [“AY”] 2012-13, the assessee has filed this appeal.
At the outset, we note that the assessee “Shri George Jacob” expired before completion of assessment-proceedings by AO. Therefore, the AO
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Kusum George Jacob (Legal Heir of Late Shri George Jacob) ITA No. 657/Ind/2025 – AY 2012-13 passed assessment-order in the name of “Late Shri George Jacob, Through
Legal Heir”. Thereafter, the first-appeal before CIT(A) as well as present
appeal before ITAT was/is being pursued by deceased assessee’s wife & legal
heir “Kusum George Jacob”. Accordingly, the term “assessee” used in
subsequent discussion shall, depending upon context and requirement,
refer and mean the “deceased assessee” or “legal heir”.
The registry has informed that the present appeal is delayed by 335
days and therefore time-barred. The assessee has filed an application/
affidavit for condonation of delay; the same is scanned and re-produced for
an immediate reference:
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Kusum George Jacob (Legal Heir of Late Shri George Jacob) ITA No. 657/Ind/2025 – AY 2012-13
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Kusum George Jacob (Legal Heir of Late Shri George Jacob) ITA No. 657/Ind/2025 – AY 2012-13
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Kusum George Jacob (Legal Heir of Late Shri George Jacob) ITA No. 657/Ind/2025 – AY 2012-13
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Kusum George Jacob (Legal Heir of Late Shri George Jacob) ITA No. 657/Ind/2025 – AY 2012-13
The averments made by assessee in above application, which are self-
explanatory and which do not require repetition, were discussed. Then, the
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Kusum George Jacob (Legal Heir of Late Shri George Jacob) ITA No. 657/Ind/2025 – AY 2012-13 Ld. AR for assessee very humbly submitted that there is no lethargy,
negligence, mala fide intention or ulterior motive of assessee in making delay
and the assessee does not stand to derive any benefit because of delay. He
requested for condonation of delay. The Ld. DR for revenue does not have
any objection if the bench condones delay and accordingly left it to the
wisdom of bench. We have considered the explanation advanced by assessee
and in absence of any contrary fact or material on record, the assessee is
found to have a “sufficient cause” for delay in filing present appeal. We find
that section 253(5) of the Act empowers the ITAT to admit an appeal after
expiry of prescribed time, if there is a “sufficient cause” for not presenting
appeal within prescribed time. It is also a settled position by Hon’ble
Supreme Court in Collector, Land Acquisition Vs Mst. Katiji and others
1987 AIR 1353, 1987 2 SCC 387 that whenever substantial justice and
technical considerations are opposed to each other, the cause of substantial
justice must be preferred by adopting a justice-oriented approach. Thus,
taking into account the facts of case, the provision of section 253(5) and the
decision of Hon’ble Supreme Court, we take a judicious view, condone delay,
admit appeal and proceed with hearing.
The background facts leading to present appeal are such that the
assessee “Late Shri George Jacob” was an employee of “Bharat Heavy
Electricals Limited, Bhopal”. For AY 2012-13, the assessee did not file any
return of income. The AO, on the basis of AIR information revealing that the
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Kusum George Jacob (Legal Heir of Late Shri George Jacob) ITA No. 657/Ind/2025 – AY 2012-13 assessee made investment of Rs. 10,00,000/- in bonds of “Shriram
Transport Finance Co. Ltd.” during the previous year 2011-12 relevant to AY
2012-13, issued notice dated 27.03.2019 u/s 148 to assessee for making
assessment u/s 147. The AO also issued follow-up notices u/s 142(1).
However, the assessee did not make any compliance. Ultimately, the AO
called information directly from “Shriram Transport Finance Co. Ltd.” u/s
133(6) and issued show-cause notice to assessee for making best judgement
assessment u/s 144 but this show-notice also remained un-complied by
assessee. Finally, the AO completed assessment u/s 144 after making an
addition of Rs. 10,00,000/- on account of unexplained investment in bonds.
Aggrieved, the assessee carried matter in first-appeal before CIT(A) but could
not make representation, hence the CIT(A) dismissed appeal of assessee and
upheld AO’s order. Now, the assessee has come in next appeal before us.
The sole issue involved in present appeal is the addition of Rs.
10,00,000/- made by AO on account of unexplained investment in bonds of
“Shriram Transport Finance Co. Ltd.”
Ld. AR for assessee carried us to a Paper-Book consisting of 9 pages;
the “Index-Cum-Certification” page of same is scanned and re-produced
below:
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Kusum George Jacob (Legal Heir of Late Shri George Jacob) ITA No. 657/Ind/2025 – AY 2012-13
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Kusum George Jacob (Legal Heir of Late Shri George Jacob) ITA No. 657/Ind/2025 – AY 2012-13 8. By referring to various documents placed in Paper-Book as per above
Index, the Ld. AR attempted to demonstrate that the assessee received
proceeds of retirement benefits from “Bharat Heavy Electricals Limited,
Bhopal” and the same proceeds were utilized for making impugned
investment in the bonds of “Shriram Transport Finance Co. Ltd.” However,
Ld. AR asserted in open court, which is also mentioned in the Certificate
given just below “Index” in Paper-Book (re-produced above), that those
documents were not filed before AO. Further, the CIT(A) has also not
examined these documents. Therefore, those documents constitute
additional evidences and require verification by AO. After discussions,
learned Representatives of both sides came to a consensus for remanding
this matter to the file of AO for a fresh adjudication.
In view of above; having regard to the principle of natural justice and
also bearing in mind that no prejudice would be caused to revenue if the
present matter is restored at the level of AO, we remand this matter back to
the file of AO for adjudication afresh, at the risk and responsibility of
assessee. The AO shall give necessary opportunity of hearing to assessee
and pass an appropriate order uninfluenced by his earlier order. The
assessee is also directed to remain vigilant and ensure participation in the
hearings as may be fixed by AO and do not seek unnecessary adjournments
failing which the AO shall be at liberty to pass appropriate order in
accordance with law. Ordered accordingly.
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Kusum George Jacob (Legal Heir of Late Shri George Jacob) ITA No. 657/Ind/2025 – AY 2012-13 10. Resultantly, this appeal is allowed for statistical purpose.
Order pronounced in open court on 27/02/2026
Sd/- Sd/-
(PARESH M. JOSHI) (B.M. BIYANI) JUDICIAL MEMBER ACCOUNTANT MEMBER
Indore
िदनांक/Dated : 27/02/2026
Patel/Sr. PS Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order E COPYSr. Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore
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