Gautam Kumar Thomala L/r of T Vinayaka Reddy, Bangalore V. Income Tax Officer, Ward-2(1) , Tirupati

ITA 391/Hyd/2020

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 7048 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 1 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-08-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Next Hearing Date: 29-07-2021
• Assessment Year: 2013-2014
• Appeal Filed On: 14-07-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 142(1); 201; 13; 147; 148; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH : HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ITA NO. 391 /HYD./2020 ASSESSMENT YEAR: 201 3 - 14 SRI GAUTAM KUMAR THOMALA VS. ITO, WARD 2 ( 1 ) L/R OF : T. VINAYAKA REDDY TIRUPATI BANGALORE [PAN: ADIPT4373Q ] (APPELLANT) (RESPONDENT) FOR ASSESSEE : SRI SASHANK DUNDU, ADV. FOR REVENUE : SH. SANJEEV BHAGAT, D.R DATE OF HEARING : 29 /07/2021 DATE OF PRONOUNCEMENT : 30 /0 8 /2021 O R D E R PER P. MADHAVI DEVI, JM THIS IS ASSESSEES APPEAL FOR A.Y. 201 3 - 14 AGAINST THE ORDER OF CIT(APPEALS) , TIRUPATI DATED 12.02.2020 CONFIRMING THE ASSESSMENT ORDER PASSED ON 29.12.2017. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE HAD EXPIRED ON 26.11.2015. AS PER THE INFORMATION RECEIVED BY THE ASSESSING OFFICER (AO) , THE ASSESSEE HAD MADE CASH DEPOSITS OF RS . 53,55,500/ - IN TO HIS SB A/C NO. 71 4 84363 MAINTAINED AT SAPTAGIRI GRAMEENA BANK, NA RAYANAV ANAM AND ALSO SB A/C MAINTAINED IN ICICI BANK, PUTTUR DURING THE FY 2012 - 13 . THEREFORE, THE AO ISSUED A LETTER DATED 8.9.2015 REQUESTING THE ASSESSEE TO FILE A RETURN OF ITA NO. 391/H/2020 AY 2013 - 14 SRI GAUTAM KUMAR THOMALA L/R OF T.VINAYAKA REDDY 2 INCOME FOR AY 2013 - 14 WHICH WAS DULY SERVED ON THE ASSESSEE ON 14 . 9 . 2015. AS THE ASSESSEE DID NOT FILE THE RETURN OF INCOME, THE AO INITIATED PROCEEDINGS U/S 147 AND NOTICE U/S 148 WAS ISSUED TO ASSESSEE ON 28.9 . 2016 . THEREAFTER NOTICE U/S 142(1) WAS ISSUED TO ASSESSEE BUT SINCE THERE WAS NO RESPONSE FROM THE ASSESSEE, THE AO PROCEEDED TO COMPLETE THE ASSESSMENT U/S 144 R . W.S. 147 OF THE ACT, TREATING THE ENTIRE CASH DEPOSITS AS INCOME OF THE ASSESSEE FROM UNDISCLOSE D SOURCES AND BROUGHT THE SAME TO TAX . AGGRIEVED THE LEGAL HEIR OF ASSESSEE FILED AN APPEAL BEFORE THE CIT(A) STATING THAT THE ASSESSMENT ORDER PASSED ON A DEAD PERSON WAS NOT MAINTAINABLE. THE CIT(A) DISMISSED THE SAME BY HOLDING THAT THE ASSESSEE DID N OT RESPOND TO THE MULTIPLE SHOW CAUSE NOTICES ISSUED BY THE AO AGAINST THIS ORDER OF CIT(A), THE ASSESSEE IS IN APPEAL BEFORE US. 3. LD.COUNSEL FOR THE ASSESSEE , WHILE REITERATING SUBMISSIONS MADE BEFORE THE CIT(A) , HAS DRAWN OUR ATTENTION TO THE COPY OF THE ENDORSEMENT OF THE POSTAL AUTHORITIES ON THE COVER OF THE NOTICES ISSUED BY THE AO WHEREIN IT IS CLEARLY STATED THAT THE ASSESSEE T. VINAYAKA REDDY HA D DECEASED AND THEREFORE , THE LETTER WAS RETURNED UNSERVED TO THE SENDER. THIS ENDORSEMENT APPE ARS TO BE IN 2017, AND THE ASSESSMENT ORDER IS ALSO PASSED ON 29.12.2017. THEREFORE, IT IS CLEAR THAT THE AO WAS AWARE OF THE DEATH OF THE ASSESSEE AND THAT FOR THIS REASON ONLY, NOTICE HAS BEEN RETURNED UNSERVED , BUT HE HAS NOT TAKEN ANY STEPS TO BR ING THE LRS ON RECORD TO PROCEED FURTHER . THE DR WAS DIRECTED TO GET INSTRUCTIONS FROM THE AO ON THIS EVIDENCE. 4. TODAY , AT THE TIME OF HEARING , LD.DR CONFIRMED THAT THE NOTICE ISSUED BY THE AO WAS RETURNED UNSERVED WITH THE ABOVE ENDORSEMENT . HOWEVER, HE ARGUED THAT IN SPITE OF SERVICE OF NOTICE U/S 148, THE LEGAL HEIR OF THE ASSESSEE HAD NOT RESPONDED TO THE AO AND THEREFORE THE AO WAS CONSTRAINED TO COMPLETE THE ASSESSMENT U/S 144 RWS 147 OF THE ACT. ITA NO. 391/H/2020 AY 2013 - 14 SRI GAUTAM KUMAR THOMALA L/R OF T.VINAYAKA REDDY 3 5. TAKING THE ABOVE FACTS INTO CONSIDERATION, WE FIND THAT THE AO WAS VERY MUCH AWARE THAT THE NOTICE SENT BY HIM IS RETURNED UNSERVED DUE TO THE DEATH OF THE ASSESSEE AS POSTAL AUTHORITIES HAVE ENDORSED ON THE ENVELOPE ITSELF THAT THE ASSESSEE HAD DECEASED . IN SUCH CIRCUMSTANCES , THE AO OUGHT TO HAVE TAKEN STEPS TO ENQUIRE ABOUT THE SAME , AND AFTER VERIFICATION OF THE TRUTH, OUGHT TO HAVE BR OUGHT T H E ASSESSEES LRS ON RECORD TO COMPLETE THE ASS ESSMENT . IT IS SETTLED LAW THAT THE ASSESSMENT CANNOT BE MADE ON A DEAD PERSON . T HEREFORE , ON THIS GROUND ALONE, THE ASSESSMENT IN THIS CASE IS NOT SUSTAINABLE AND THE APPEAL IS ACCORDINGLY ALLOWED. 6 . IN THE RESULT, THE ASSESSEES APPEAL IS ALLOWED . ORDER PRONOUNCED IN OPEN COURT ON 30 /0 8 /2021. SD/ - SD/ - (A. MOHAN ALANKAMONY) (P. MADHAVI DEVI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 30 TH AUGUST, 2021 *GMV COPY OF ORDER FORWARDED TO: 1. SRI GAUTAM KUMAR THOMALA L/R OF T. VINAYAKA REDDY, FLAT NO. 17, CKB LAYOUT, MUNNEKULOLA, BANGALORE 2. IT O, WARD 2 ( 1 ), TIRUPATI 3. ACIT, RANGE 2, TIRUPATI 4. CIT(A) , TIRUPATI 5. PR.CIT , TIRUPATI 6. D.R. ITAT HYDERABAD 7. GUARD FILE