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Income Tax Appellate Tribunal, “A” BENCH, KOLKATA
This is an appeal preferred by the assessee against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 17.09.2025 for the AY 2020-21. The penalty was levied by the ld. AO u/s 270A of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) vide order dated 23.06.2026.
The only issue raised by the assessee is against the imposition of penalty of Rs.12,77,227/- by the A.O. and its confirmation by the Learned CIT(A), under section 270A(2)(b) of the Act.
In the appellate proceedings, the ld. CIT(A), after taking into account, the submissions of the assessee ,dismissed the appeal of the assessee
After hearing the rival contentions and perusing the material available on record, we find that the probate of executors was granted by the Hon’ble Calcutta High Court on 09.03.2022, and the probate was received on 15.03.2022. Nonetheless, it is undisputed that the income as declared in the return of income filed, in response to notice u/s 148 of the Act was duly appearing in the Form 26AS on which a TDS at the rate of 10 per cent was also deducted. We also note that Shri Binoy Kumar Chandra died on 13.06.2019, and, thereafter, his estate was formed and, therefore, it was not possible to file the return of income of the estate unless a probate was granted by the Hon’ble Court in favor of the executors. We have perused the provisions of section 270A(6) of the Act, which provides that unreported income for the purpose of this section shall not include the following:-
(a) the amount of income in respect of which the assessee offers an explanation and the Assessing Officer or the Commissioner (Appeals) or the Commissioner or the Principal Commissioner, as the case may be, is satisfied that the explanation is bona fide and the assessee has disclosed all the material facts to substantiate the explanation offered;
5.1 Therefore, considering the provision of section 270A(6) of the Act, we are of the view that the explanation of the executors is reasonable and bonafide and the reasons for not filing of return are beyond the control and capacity of the executors. Therefore, the 5.2 We have also perused the FAQs issued by the Income Tax Department with regard to registration as Representative Assessee/ Register to Act on behalf of another person/ authorized another person to act on behalf of self, which provides for following criteria to appoint legal heir or executor in case of the deceased or estate of the deceased.
“Question 4: Who can register as a Representative Assessee? What are the required documents an individual need to furnish to be a Representative Assessee? The below table lists the cases where one can register as Representative Assessee along with the documents to be furnished:
| S.no. | Category of Person being represented | Who shall Register as Representative | Documents Required |
|---|---|---|---|
| 2 | Deceased (Legal heir) | Legal heir of the deceased person | Copy of PAN card of the deceased Copy of Death Certificate Copy of Legal heir proof as per the norms Copy of the order passed in the name of the deceased (Mandatory only if the reason for registration is’ Filing of an appeal against an order passed in the name of deceased’). Copy of Letter of Indemnity (optional) |
Legal Heir Certificate issued by Court of Law/ Local Revenue Authority. Surviving family member certificate issued by the Local Revenue Authority. Family Pension certificate issued by Central/ State Government. Register Will.
5.4 Before parting, we would like to mention that F.Y. 2020-21 and F.Y. 2021-22 were COVID period and, therefore, it took approximately three years to obtain probate from the Hon’ble Court after demise of Mr. Binoy Kumar Chandra on 13.06.2019. We would like to mention that Hon’ble Supreme Court has Suo moto extended the limitation from 20.03.2020 till 28.02.2022, vide order dated 10.01.2022 in Miscellaneous Application No. 21 of 2022, in Miscellaneous Application No. 665 of 2021 in Suo moto Writ Petitions(C) No. 3 of 2020. Since, the probate was granted on 09.03.2022, and was received on
In the result, appeal of the assessee is allowed.
Order pronounced on 15.04.2026.