Sri. G.M. Muralidhar (HUF) By Manager, Dakshayani Muralidhar, Bengaluru V. The Income Tax Officer, Ward - 7(2)(4), Bangalore

ITA 2425/BANG/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 0736 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 7 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-07-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 25-06-2021
• Assessment Year: 2016-2017
• Appeal Filed On: 25-11-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRIYADARSHI MISHRA
• Section: 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH: BANGALORE BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER ITA NO.2425/BANG/2019 ASSESSMENT YEAR: 2016-17 SHRI G.M MURALIDHAR (HUF) BY MANAGER, DAKSHAYANI MURALIDHAR, NO.733, 14 TH MAIN, 18 TH CROSS, BSK 2 ND STAGE, BENGALURU-560 070. PAN NO : AAFHG 7513 K VS. THE INCOME-TAX OFFICER, WARD-7(2)(4), BENGALURU. APPELLANT RESPONDENT APPELLANT BY : SMT. SUMAN LUNKAR, ADVOCATE RESPONDENT BY : SHRI PRIYADARSHI MISHRA, ADDL. CIT (DR) DATE OF HEARING : 25.06.2021 DATE OF PRONOUNCEMENT : 14.07.2021 O R D E R PER BEENA PILLAI, JUDICIAL MEMBER: PRESENT APPEAL HAS BEEN FILED BY ASSESSEE A GAINST ORDER DATED 31/10/2019 PASSED BY THE LD.CIT(A)-7, BANGALO RE FOR ASSESSMENT YEAR 2016-17. 2. THE LD.AR SUBMITTED THAT, THE KARTA OF ASSESSEE DECEASED ON 09/11/2017, LEAVING HIS WIFE AS LEGAL HEIR, WHO WAS UNAWARE OF THE FINANCIAL TRANSACTIONS OF THE HUF. HE SUBMIT TED THAT THE ASSESSMENT ORDER WAS PASSED UNDER SECTION 144 OF TH E ACT, AS PAGE 2 OF 5 ITA NO.2425/BANG/2019 NONE APPEARED ON BEHALF OF ASSESSEE. ON RECEIPT OF THE ASSESSMENT ORDER, THE LEGAL HEIR OF THE KARTA, BEIN G HIS WIFE FILED APPEAL BEFORE THE LD.CIT(A). 2.1 BEFORE THE LD.CIT(A), THE LEGAL HEIR OF ASSESSE E FAILED TO APPEAR EVEN AFTER REPEATED NOTICES BEING ISSUED. TH E LD.CIT(A) WHILE DISMISSING THE APPEAL NOTED THAT NO WRITTEN S UBMISSION WAS FILED BEFORE THE LD.AO AND THE NOTICES ISSUED B Y THE LD.AO WAS IGNORED BY THE ASSESSEE. 3. AGGRIEVED BY THE ORDER OF LD.CIT(A), ASSESSEE IS IN APPEAL BEFORE US NOW. 3.1 AT THE OUTSET, THE LD.AR SUBMITTED THAT, THE LE GAL HEIR OF ASSESSEE IS ABSOLUTELY UNAWARE ABOUT THE ACTIVITIES THAT WAS CARRIED OUT BY KARTA OF ASSESSEE. HE SUBMITTED THAT ASSESSEE MAY BE GRANTED ONE MORE OPPORTUNITY WHEREIN THE LEGAL H EIR COULD FILE ALL REQUISITE DETAILS IN ORDER TO SUBSTANTIATE THE CLAIM OF ASSESSEE. 4. ON THE CONTRARY THE LD. DR SUPPORTED THE ORDERS PASSED BY AUTHORITIES BELOW. 5. WE HAVE PERUSED SUBMISSIONS ADVANCED BY BOTH SID ES IN LIGHT OF RECORDS PLACED BEFORE US. 5.1 WE NOTE THAT DURING THE ASSESSMENT PROCEEDINGS THE KARTA OF ASSESSEE DEMISED, AND WIFE BEING THE LEGAL HAIR COULD NOT STEP INTO THE SHOES OF HER HUSBAND. SUBSEQUENTLY, AS THE PROCEDURES UNDER THE ACT WAS MADE AWARE TO THE WIFE AND SHE FI LED APPEAL AGAINST THE ASSESSMENT ORDER BEFORE LD.CIT(A) ON BE HALF OF HER DECEASED HUSBAND. IT CANNOT BE PRESUMED THAT SHE WO ULD HAVE KNOWN AND EXPLAINED THE TRANSACTIONS THAT WERE UNDE R QUESTION PAGE 3 OF 5 ITA NO.2425/BANG/2019 BY THE LD. AO. LD. CIT(A) WITHOUT GIVING PROPER OPP ORTUNITY AND WITHOUT HEARING THE ASSESSEE DISMISSED THE APPEAL B Y CONFIRMING THE ASSESSMENT ORDER SO PASSED. SUCH ORDERS IN OUR OPINION CANNOT BE UPHELD AS LD. CIT(A) HAS PASSED AN ORDER WITHOUT FOLLOWING DUE PROCESS OF LAW. WE THEREFORE REMIT TH IS ISSUE BACK TO THE LD. AO TO CARRY OUT DENOVO OF ASSESSMENT. AS SESSEE BEING REPRESENTED BY THE WIFE OF DECEASED KARTA IS DIRECT ED TO APPEAR AND FILE ALL REQUISITE DETAILS AS CALLED FOR. THE L D.AO SHALL THEN CARRY OUT NECESSARY VERIFICATION AND CONSIDER THE C LAIM IN ACCORDANCE WITH LAW. NEEDLESS TO SAY THAT PROPER OP PORTUNITY OF BEING HEARD MUST BE GRANTED TO ASSESSEE IN ACCORDAN CE WITH LAW. ACCORDINGLY THE GROUNDS RAISED BY ASSESSEE STANDS A LLOWED FOR STATISTICAL PURPOSES. IN THE RESULT APPEAL FILED BY ASSESSEE STANDS ALLOW ED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN OPEN COURT ON 14 TH JULY, 2021 SD/- SD/- (CHANDRA POOJARI ) ACCOUNTANT MEMBER (BEENA PILLAI) JUDICIAL MEMBER BANGALORE, DATED 14 TH JULY, 2021. VMS PAGE 4 OF 5 ITA NO.2425/BANG/2019 COPY TO : 1. THE APPLICANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASST. REGISTRAR, ITAT, BANGALORE. PAGE 5 OF 5 ITA NO.2425/BANG/2019 DATE INITIAL 1. DRAFT DICTATED ON ON DRAGON SR.PS 2. DRAFT PLACED BEFORE AUTHOR -7-2021 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER -7-2021 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. -7-2021 JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS -7-2021 SR.PS/PS 6. KEPT FOR PRONOUNCEMENT ON -7-2021 SR.PS 7. DATE OF UPLOADING THE ORDER ON WEBSITE -7-2021 SR.PS 8. IF NOT UPLOADED, FURNISH THE REASON -- SR.PS 9. FILE SENT TO THE BENCH CLERK -7-2021 SR.PS 10. DATE ON WHICH FILE GOES TO THE AR 11. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 12. DATE OF DISPATCH OF ORDER. 13. DRAFT DICTATION SHEETS ARE ATTACHED NO SR.PS