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Income Tax Appellate Tribunal, “RAJKOT” BENCH, RAJKOT
Before: SHRI MAHAVIR PRASAD, JUDICIAL MEMEBR & SMT. ANNAPURNA GUPTA, ACCOUNTANT MEMEBR
ORDER PER MAHAVIR PRASAD, JM:
The captioned appeal has been filed at the instance of the Revenue against the order of the Commissioner of Income Tax (Appeals), Jamnagar (‘CIT(A)’ in short) vide Appeal No. CIT(A)/Jam/0093/10-11/554, dated 31.08.2015 arising in the [ITO vs. Late Shri Hirji Govind Hadia] AY 1995-96 - 2 - assessment order dated 29.12.2010 passed by the Assessing Officer (AO) under s. 143(3) r.w.s. 254(1) of the Income Tax Act, 1961 (the Act) concerning AY. 1995-96.
The ground of appeal raised by Revenue as under:
“The CIT(A) erred in law and on facts in deleting the addition of Rs.2,61,37,469/- made in the hands of legal representative of the assessee on a/c of compensation received.”
The facts of the case are that this is second round before the ITAT and earlier Tribunal set aside the matter to the file of the AO directing to make a fresh assessment. Subsequently, in the de novo assessment proceedings, the AO repeated the addition and taxed the same again in the hands of the assessee by contending that assessee was bound to discharge the tax liability of the deceased. In this case, the compensation of Rs.2,61,37,467/- was given in favour of the father of the assessee Late Shri Hirji Govind Hadia. When this compensation was given, father of the assessee already died. During life time of the deceased father, the legal heir Shri Prakash Hirji Hadia used to stay with him. During the assessment proceedings by the learned AO, it is revealed that the legal heir Shri Prakash Hirji Hadia have operated two bank accounts with the bank at The Bhuj Mercantile Co.Op. Bank Ltd., Ahmedabad. The particulars of the bank account details as under:
[ITO vs. Late Shri Hirji Govind Hadia] AY 1995-96 - 3 - Legal Hier Prakash Hirji Hadia Sr. Account Nature Name of the Account operated No. No. of Jt. Holder till date account 01 50726 Savings Single Closed on 24.09.2003 02 54299 Savings Single Till the . date of 30.09.2010 03 54600 Savings Govind J. Closed on Hadia 19.10.2005 The joint account was held by Legal hire Prakash Hirji Hadia with Shri Govind Jakhu Hadia of parner of M/s Govind jakhu & Company with account No.54600. The said account was operated from 20.09.2005 to 19.10.2005 Since, the total compensation of Rs.2,61,37,469/- was received but no taxes have been paid. Shri Hirji Govind Hadia was expired on 26.10.1999. No detailed enquiries have been made by either by the AO or by the CIT(A). The CIT(A) mentioned in his order that he sought remand report from the learned AO but despite of the reminder no remand report was submitted to the learned CIT(A). Since, CIT(A)’s power is co-terminus with power of AO; he can ask for all details required to adjudicate the issue and to our mind, he ought to have conducted detailed enquiry at his level but same was not done in the case in our hand and same is amount to miscarriage of justice. Therefore, we set aside this matter back to the file of the CIT(A) to decide the matter afresh after making detailed enquiry within 180 days from the receipt of [ITO vs. Late Shri Hirji Govind Hadia] AY 1995-96 - 4 - this order as per law. We make it clear that assessee shall not seek unnecessary adjournment in the matter and shall cooperate with the learned CIT(A).
In the result, the appeal of the Revenue is allowed for statistical purposes.
This Order pronounced in Open Court on 25/02/2022
Sd/- Sd/- (ANNAPURNA GUPTA) (MAHAVIR PRASAD) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad: Dated 25/02/2022 True Copy S.K.SINHA आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. राज�व / Revenue 2. आवेदक / Assessee 3. संबं�धत आयकर आयु�त / Concerned CIT 4. आयकर आयु�त- अपील / CIT (A) 5. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड� फाइल / Guard file. By order/आदेश से,