AMITA VIKAS UGHADE,MUMBAI vs. WARD 34(1)(1) MUMBAI, MUMBAI

The Ld.AR submitted that the assessee is an individual and was serving in Indian Railways. Her husband expired on 24-03-2012 and accordingly, the retirement benefits of her husband were received by the assessee. All those moneys were deposited into Fixed Deposits with ITANo. 840/Mum/2024 co-operative banks. The assessee filed her return of income for the year under consideration, declaring a total income of Rs.5,76,620/-, which was revised to Rs. 5,74,120/- later. In view of the large deposits held by the assessee, the return of income was taken up for scrutiny.

During the course of assessment proceedings, the AO recorded a statement from the assessee on 27-12-2016, wherein the assessee admitted that the sources relating to various Fixed Deposits were not readily available and the same will be produced later. However, the AO completed the assessment on the very same day i.e., on 27-12-2016 itself by making additions towards un-explained investments, un-explained cash credits and interest income.

The Ld.CIT(A) also confirmed the same. It is also pertinent to note that, while the appeal was pending before the Ld.CIT(A), the assessee also expired on 11-01-2023. However, the Ld.CIT(A) proceeded to pass the order on 31-01-2024 in the name of the deceased assessee, even though the notice of death of the assessee was brought to his notice by the Legal Heirs. Since the Ld.CIT(A) confirmed the additions, the Legal Heir of the assessee has filed this appeal.

The Ld.AR submitted that the AO did not provide enough opportunity to the assessee for furnishing sources relating to bank deposits. Accordingly, Ld.AR prayed for providing a proper opportunity to the assessee.

We heard the Ld.DR and perused the record. We noticed that the AO has recorded a statement from the assessee on 27-12-2016 and he passed the assessment order on the very same day. In the said statement,

Since the assessee was not provided with proper opportunity by the AO and since the documents that may be furnished by the assessee would require verification, in the interest of natural justice, we deem it proper to restore all the issues contested before the Tribunal to the file of the AO, so that the assessee could furnish necessary evidences and documents, explaining the sources of deposits.

Accordingly, we set aside the order passed by the Ld.CIT(A) and restore all the issues to the file of the AO for examining them afresh. After affording adequate opportunity of being to the assessee, the AO may take an appropriate decision in accordance with law.