Dy. Commissioner of Income Tax , Circle-11(1), Hyderabad V. Late Ajit Kumar Vaddevalli L/r Vaddevalli Sarita Devi , Hyderabad

ITA 1209/Hyd/2018

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 3991 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 11 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-06-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB-B
• Next Hearing Date: 27-05-2021
• Assessment Year: 2013-2014
• Appeal Filed On: 08-06-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M DAYASAGAR
• Assessee Lawyers: P MURALI MOHANA RAO
• Keywords: Capital Gains
• Section: 192; 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD (THROUGH VIRTUAL CONFERENCE) BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER IT A NO. 1209 /H/20 1 8 ASSESSMENT YEAR: 2 0 1 3 - 1 4 DY. COMMISSIONER OF INCOME - TAX, CIRCLE 11(1), HYDERABAD. VS. LATE AJIT KUMAR VADDEVALLI, L/R VADDEVALLI SARITA DEVI, HYDERABAD. PAN ABXPV 4777F (APPELLANT) (RESPONDENT) REVENUE BY: SHRI M . DAYASAGAR ASSESSEE BY: SHRI P. MURALI MOHANA RAO DATE OF HEARING: 27 /0 5 /2021 DATE OF PRONOUNCEMENT: 02 /0 6 /2021 O R D E R PER L.P. SAHU, A.M. : THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST CIT(A) 5 , HYDERABADS ORDER DATED 2 7 / 0 3 /201 8 FOR AY 20 1 3 - 1 4 . 2 . BRIEFLY, THE FACTS OF THE CASE ARE THAT THE ASSESSEE, AN INDIVIDUAL, DOING SOFTWARE CONSULTANCY BUSINESS, FILED HIS RETURN OF INCOME FOR THE AY 2013 - 14 ON 30/09/2013 I TA NO. 1209 /HYD /201 8 SHRI AJIT KUMAR VADDEVALLI , HYD. : - 2 - : ADMITTING TOTAL INCOME OF RS. 27,09,790/ - . THE CASE WAS SELECTED FOR SCRUTINY AND STATU TORY NOTICES WERE ISSUED AND ALSO A SHOW CAUSE NOTICE WAS ISSUED TO THE ASSESSEE ON 11/03/2016. 2.1 DURING THE COURSE OF ASSESSMENT PROCEEDINGS, BEFORE COMPLETING THE ASSESSMENT BY THE AO, ASSESSEES WIFE AND LEGAL HEIR OF ASSESSEE SUBMITTED THAT SHRI AJ IT KUMAR VADDEVALLI DIED ON 22/03/ 2014 . AO AFTER EXAMINING THE DETAILS SUBMITTED BY THE ASSESSEE, ASSESSED THE INCOME OF THE ASSESSEE AT RS. 6,45,76,298 BY MAKING AN ADDITION OF RS. 6,18,66,508/ - TOWARDS LONG TERM CAPITAL GAINS AND ACCORDINGLY, PASSED THE ASSESSMENT ORDER ON 3 0 /03/2016 IN THE NAME OF SHRI AJIT KUMAR VADDEVALLI. 3. AGGRIEVED BY THE ORDER OF AO, THE LEGAL HEIRS OF THE ASSESSEE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A) AND CIT(A) AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE DELETED THE ADDITION MADE BY THE AO AND PASSED THE ORDER IN THE NAME OF LATE AJIT KUMAR V ADDEVALLI (REPRESENTED BY L/R VADDEVALLI SARITA DEVI) . 4. AGGRIEVED BY THE ORDER OF CIT(A), THE REVENUE IS IN APPEAL BEFORE THE ITAT. I TA NO. 1209 /HYD /201 8 SHRI AJIT KUMAR VADDEVALLI , HYD. : - 3 - : 5. AT THE OUTSET OF HEARING, THE LD. AR QUOTED RULE 27 OF APPELLATE TRIBUNAL RULES 1913 AND SUBMITTED THAT THE ASSESSMENT ORDER WAS PASSED IN THE NAME OF NON - EXI S TENT PERSON I.E. THE ASSESSEE, WHO HAD BEEN EXPIRED ON 22/03/2014, T HE INFORMATION OF WHICH WAS DULY INTIMATED TO THE AO BY THE WIFE OF ASSESSEE, WHO IS THE LEGAL HEIR AND THE AO DULY INCORPORATED THE SAID INFORMATION IN HIS ORDER AT PARA 5. HE THEREFORE SUBMITTED THAT, HOWEVER, THE AO PASSED THE ORDER IN THE NAME OF THE A SSESSEE I.E. LATE AJIT KUMAR, NON - EXISTENT PERSON, AND THE ORDER OF THE AO IS VOID AND AB - INITIO. THE LD. AR OF THE ASSESSEE RELIED ON THE FOLLOWING CASE LAW: 1. MARUTI SUZUKI INDIA LTD., [2019] 107 TAXMANN.COM 375 (SC) 2. EMUDHRA LTD., [2020] 117 TAXMAN N.COM 550 (KAR.) 3. ALAMELU VEERAPAN, [2018] 95 TAXMANN.COM 135 (MAD.) 4. RUPA SHYAMSUNDAR DHUMATKAR [2020] 120 TAXMANN.COM 323 (BOM.) 5. MOHIT SURESH HARCHANDRAI, [2017] 80 TAXMANN.COM 174 (MUM. TRIB.) 6. VEGETABLE PRODUCTS LD., [1973] 88 ITR 192 (SC) 6. THE LD. CIT - DR RELIED ON THE ORDER OF AO AND HE COULD NOT SUBSTANTIATE HIS ARGUMENT THAT THE AO HAS PASSED THE ORDER IN THE NAME OF NON - EXISTENT PERSON. 7. AFTER CONSIDERING THE SUBMISSIONS OF BOTH THE PARTIES AND PERUSING THE MATERIAL ON RECORD AS WELL AS GOING THROUGH THE ORDERS OF REVENUE AUTHORITIES, WE FIND SUBSTANCE IN THE SUBMISSIONS OF THE LD. AR THAT THE AO HAS I TA NO. 1209 /HYD /201 8 SHRI AJIT KUMAR VADDEVALLI , HYD. : - 4 - : PASSED THE ORDER IN THE NAME OF LATE AJ IT KUMAR, NON - EXISTENT PERSON, THE INFORMATION OF WHICH HAS BEEN INTIMATED TO AO BY THE WIFE OF ASSESSEE, WHO IS THE LEGAL HEIR, DURING ASSESSMENT PROCEEDINGS. A COPY OF DEATH CERTIFICATE OF VADDEVALLI AJIT KUMAR HAS ALSO BEEN PRODUCED BEFORE US ISSUED BY THE GREATER HYDERABAD MUNICIPAL CORPORATION. DATED 13/05/2014. CONSIDERING THE CASE LAW SUBMITTED BY THE LD. AR, WHICH ARE IN SUPPORT OF ASSESSEES CASE, THE ASSESSMENT ORDER PASSED BY THE AO IS VOID AND AB - INITIO AND THE SAME IS NOT SUSTAINABLE IN THE EY ES OF LAW. AGAINST SUCH ASSESSMENT ORDER, APPEAL FILED BY THE REVENUE STANDS DISMISSED. 8 . IN VIEW OF THE ABOVE OBSERVATIONS, THE APPEAL OF THE REVENUE IS DISMISSED IN ABOVE TERMS. PRONOUNCED IN THE OPEN COURT ON 2 ND JUNE , 2021 . SD/ - SD/ - ( S.S. GODARA ) (L . P . SAHU) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDE RABAD, DATED : 2 ND JUNE , 20 2 1 . K V I TA NO. 1209 /HYD /201 8 SHRI AJIT KUMAR VADDEVALLI , HYD. : - 5 - : C OPY TO : 1 DCIT, CIRCLE 11(1), ROOM NO. 1012, 10 TH FLOOR, SIGNATURE TOWERS, OPP. BOTANICAL GARDEN, KONDAPUR, HYDERABAD. 2 SHRI AJIT KUMAR VADDEVALLI, VILLA NO. 343, 13 TH PHASE, INDU FORTUNE FIELDS, KPHB COLONY, KUKATPALLY, HYDERABAD 500 072 3 C I T(A) 5 , HYDERABAD. 4 PR. CIT - 5 , HYDERABAD 5 ITAT, DR, HYDERABAD. 6 GUARD FILE.