SH. GURCHARAN SINGH,LUDHIANA vs. ITO, LUDHIANA
What did the Tribunal hold?
The Tribunal set aside the impugned order and remanded the matter back to the AO. The AO was directed to first bring the legal heirs on record after verification and then pass a speaking order after providing an opportunity of being heard.
What were the facts?
The assessee sold agricultural land and the AO brought to tax the long-term capital gain. The assessee expired during the pendency of the appeal before the ITAT. The legal heirs were not properly brought on record.
What were the issues?
Whether the legal heirs of the deceased assessee have been properly brought on record and whether the appeal can proceed without them.
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DIVISION BENCHES ‘B’, CHANDIGARH
Before: MS. DIVA SINGH & MS. ANNAPURNA GUPTA
PER DIVA SINGH
The present appeal has been filed by the assessee assailing the correctness of the order dated 28.03.2011 of CIT(A)-2 Ludhiana pertaining to 2007-08 assessment year on various grounds. 2. The issue for consideration in the present appeal is sale agricultural land situated at village Sahnewal Khurd sold by the assessee on 19.05.2006 for a sale consideration of Rs. 42,34,375/- on which the AO brought to tax long term capital gain not shown by the assessee. 3. However, before proceeding with the ground, it was noticed that the assessee as per record, expired on 30.01.2015 and over the years, the appeal has been adjourned on this ground. A perusal of the ordesheet shows that on 21.07.2016, time was sought on behalf of the assessee to file revised form No. 36 in order to bring the legal heirs of the assessee on record. Time was granted. The assessee filed revised form No. 36 with Shri Balraj Singh as the legal heir of the assessee and on 24.08.2016, time was given to the ld. DR to verify the stated claim. Consequently, on 28.06.2017, the following handwritten order-sheet entry was passed :
ITA 541/CHD/2011 A.Y.2007-08 Page 2 of 2
“ld. AR stated that assessee expired on 30.02.2015. Legal heirs are stated to have approached the AO to bring them on record. Copy to be filed by the ld. AR. Mr. S.K. Mittal, Sr.DR present. Adjourned to 31.08.2017. Read out in the Tribunal.” Sd/- Judicial Member 3.1. Thereafter, on various other dates, appeal came up for hearing and neither the assessee nor department gave any information as to whether the legal heirs have been brought on record or not. On the present date of hearing also, ld. AR filed a letter dated 24.05.2017 addressed to the AO submitted that it has been stated that, “Shri Gurcharan Singh has died on 30.01.2015 leaving behind two sons namely Shri Balraj Singh & Shri Jagwaj Singh and two daughters namely Smt. Harvinder Kaur & Smt,. Rashpal Kaur. Copy of death certificate is enclosed”. On query that whether Shri Gurcharat Singh had a surviving wife, he was unable to state. Ld. DR also stated that he was not aware whether the legal heirs have been brought on record. 4. In these circumstances after hearing the parties, it was deemed appropriate to set aside the impugned order back to the file of the AO with the direction to first bring the legal heirs on record after carrying out necessary verification which would include the taking on record the children of Shri Gurcharan Singh and surviving wife, if any and thereafter, having brought the legal heirs on record, the AO is directed to issue notice to the legal heirs and pass a speaking order in accordance with law after giving the legal heirs a reasonable opportunity of being heard. Said order was pronounced in the Open Court at the time of hearing itself. 5. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the Open Court on 04.09.2018.
Sd/- Sd/- (ANNAPURNA GUPTA) ( DIVA SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER ‘Poonam’ Copy to: 1. The Appellant 2. The Respondent 3. The CIT 4. The CIT(A) 5. The DR Asstt. Registrar ITAT,Chandigarh.
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