Vijay Kumar, Hisar V. ITO, Ward-5, Hisar

ITA 2724/DEL/2022

AI Insights

The case involves an appeal by the legal heir of the late Shri Vijay Sharma against the order of the National Faceless Appeal Centre (NFAC) for the Assessment Year 2010-11. The original order was passed under sections 144 and 147 of the Income-tax Act, 1961, in the name of the deceased, which was contested. The legal heir, facing financial difficulties and lack of documentation post the assessee's death, argued that the income reported was from business activities and not undisclosed. The ITAT found procedural errors in how the appeal was handled by the CIT (A), specifically the use of the deceased's name instead of the legal heir's, and remitted the case back for correction and proper adjudication.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 114043 (ITAT-DELHI)
• Duration Of Justice: 3 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-03-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 05-03-2023
• Assessment Year: 2010-2011
• Appeal Filed On: 17-11-2022
• Other Referred Cases: Savita Kapila Legal Heir of Late Shri Mohinder Paul Kapila vs. ACIT, Circle 43 (1), Delhi
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 147; 144; 43

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH ‘SMC’ : NEW DELHI) SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER ITA No.2724/Del./2022 (ASSESSMENT YEAR : 2010-11) Vijay Kumar, vs. ITO, Ward 5, House No.1309, Krishna Nagar, Hisar. Hisar – 125 001 (Haryana). (PAN : BIJPS6622N) (APPELLANT) (RESPONDENT) ASSESSEE BY : None REVENUE BY : Shri Om Prakash, Sr. DR Date of Hearing : 06.03.2023 Date of Order : 09.03.2023 ORDER This appeal by the assessee is directed against the order of National Faceless Appeal Centre (NFAC) dated 31.08.2022 pertaining to the Assessment Year 2010-11. 2. The grounds of appeal taken by the assessee read as under :- “1. That the above mentioned assessee got expired on 10.08.2011 (death certificate attached herewith for your kind perusal). 2. We don't have enough documents for your kind submission as after his death we did not very much know about the transactions made by him. 3. That he left me alone with two minor children with no earnings/ running business in hand at that time. ITA No.2724/Del./2022 2 4. That it was very difficult to survive after him in the society. 5. That our financial position in not so good and we are surviving as poor people in this modern society. 6. That due to misguidance/ negligence of old professional/ CA, we did not responded for the notices issued earlier on time. 7. That assessee got his books of accounts audited duly by a chartered accountant in said year & the balances of bank accounts shown in balance sheet are same as per bank records. Thus the deposits under same may not be treated as undisclosed income. 8. That the cash proceeds which had been deposited in savings bank accounts were purely of business nature& no income had been concealed from the department. 9. That the case of "Savita Kapila Legal Heir of Late Shri Mohinder Paul Kapila vs. ACIT, Circle 43 (1), Delhi" W. P. (C) 3258/2020 (Order Copy of Hon'ble High Court of Delhi at New Delhi is attached herewith for your kind perusal) may be taken into consideration while deciding the above said appeal. 10. Therefore in view of above mentioned reply, kindly allow our appeal & oblige.” 3. In this case, at the outset, I note that assessee is no more and AO has passed the order in the name of late Shri Vijay Sharma through legal heir, Smt. Sushma Devi, H.No.1309, Krishna Nagar, Hisar. The order was passed u/s 144 r.w.s. 147 of the Income-tax Act, 1961 (for short 'the Act'). Upon assessee’s appeal, ld. CIT (A) has passed the order not in the name of legal heir but in the name of Vijay Sharma and dismissed the appeal. ITA No.2724/Del./2022 3 4. Against this order, assessee is in appeal before me. None has appeared on behalf of the assessee. Hence, I proceed to adjudicate the issue by hearing the ld. DR of the Revenue and perusing the records. 5. Upon careful consideration, I note that despite full knowledge that the assessee is no more and AO has passed the order in the name of legal heir, ld. CIT (A) chose to pass the order in the name of dead person and resultantly, appeal before the ITAT is in the name of dead person. In my considered opinion and as agreed by the ld. DR for the Revenue, the issue needs to be remitted to the file of ld. CIT (A). Ld. CIT (A) is directed to correct the name in which order has to be passed. After the correction of this error, the matter can be appealed by the legal heir of the assessee. 6. In the result, this appeal by the assessee is allowed for statistical purposes. Order pronounced in the open court on this 9 th day of March, 2023. Sd/- (SHAMIM YAHYA) ACCOUNTANT MEMBER Dated the 9 th day of March, 2023 TS Copy forwarded to: 1.Appellant 2.Respondent 3.CIT 4.CIT(A) 5.CIT(ITAT), New Delhi. AR, ITAT NEW DELHI.