SURESH KUMAR MAHAWAR, BALASORE V. ITO WARD-1, BALASORE, BALASORE

ITA 59/CTK/2024

• Counselvise Citation: [2024] 101 COUNSELVISE.COM (IT) 7750 (ITAT-CUTTACK)
• Duration Of Justice: 2 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-04-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Appeal Filed On: 18-02-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

आयकर अऩीऱीय अधधकरण, “एस.एम.सी” न्यायऩीठ,कटक IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH CUTTACK श्री जाजज माथन, न्याययक सदस्य के समक्ष । BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER आयकर अऩीऱ सं/ITA No.59/C TK/2024 (ननधाारण वषा / Asses s m ent Year :2017-2 018) Suresh Kumar Mahawar, L/H. Smt. Radha Devi Mahawar, 25, Ganesh Market, Uttareswar, Soro, Balasore-756045 Vs ITO, Ward-1, Balasore PAN No. :ACSPM 4001 D (अऩीऱाथी /Appellant) .. (प्रत्यथी / Respondent) ननधााररती की ओर से /Assessee by : Shri Mohit Sheth, Advocate राजस्व की ओर से /Revenue by : Shri S.C.Mohanty, Sr. DR स ु नवाई की तारीख / Date of Hearing : 22/04/2024 घोषणा की तारीख/Date of Pronouncement : 22/04/2024 आदेश / O R D E R This is an appeal filed by the assessee against the order of the ld CIT(A), National Faceless Appeal Centre (NFAC), Delhi, dated 30.01.2024, passed in DIN & Order No.ITBA/NFAC/S/250/2023- 24/1060262403(1) for the assessment year 2017-2018. 2. It was submitted by the ld. AR that the assessee Suresh Kumar Mahawar died on 15.11.2016 and Smt. Radhadevi Mahawar, wife of the deceased assessee, deposited Rs.2,50,000/- on 21.11.2016 and Rs.19,28,000/- on 29.11.2016 in her bank account maintained with State Bank of India, Soro Branch bearing Account No.11248821297. It was the submission that the said account was joint account between Suresh Kumar Mahawar and Smt. Radhadevi Mahawar. It was the submission that Shri Suresh Kumar Mahawar died on 15.11.2015 relevant to the assessment year 2016-2017. It was further submission that Smt. Radhadevi Mahawar, wife of deceased assessee, had deposited cash ITA No.59/CTK/2024 2 and had also disclosed the same in her return of income filed for the assessment year 2017-2018. The ld. AR placed before me a copy of the Death Certificate of Suresh Kumar Mahawar at page 24 of the paper book, which is as follows :- 3. It was the submission that the AO issued notice u/s.142(1) of the Act on the deceased Suresh Kumar Mahawar on the ground that cash has been deposited in his bank account and as there was no return filed by Shri Suresh Kumar Mahawar, completed the assessment ex-parte. It was the submission that the assessee Suresh Kumar Mahawar having died on 15.11.2015 and the bank account having been operated by Smt Radhadevi Mahawar and Smt. Radhadevi having filed her return of income disclosing the said bank account and the transaction therein for the relevant assessment year, the assessment on the deceased Suresh Kumar Mahawar was invalid. It was the submission that Suresh Kumar Mahawar having died on 15.11.2015 as the legal heir Smt. Radhadevi Mahawar had filed return of income for Shri Suresh Kumar Mahawar for ITA No.59/CTK/2024 3 the assessment year 2016-2017 on 30.11.2016 and it was specifically mentioned in the return also that she is filing return as a legal heir. It was further submitted that Smt. Radhadevi Mahawar had also filed her own return for the assessment year 2016-2017 and the assessment u/s.143(3) of the Act had also been done on her. It was the submission that the return disclosing the entire transaction by Smt. Radhadevi Mahawar for the assessment year 2017-2018 was filed on 01.08.2017. The disclosure is shown in D-21 of the return of income filed, extract of which is as follows :- ITA No.59/CTK/2024 4 4. After receipt of the return from Smt. Radhadevi Mahawar, notice u/s.142(1) of the Act had been issued on 30.12.2017. It was the submission that the AO was also the same. It was the submission that assessment made on Suresh Kumar Mahawar, the deceased assessee, is liable to be annulled. 5. In reply, ld. Sr. DR submitted that Section 159 of the Act will apply in the case of the assessee and the assessment should be considered as legal representative. Ld. Sr. DR also vehemently supported the order of the ld. AO & ld. CIT(A). 6. I have considered the rival submissions. The submission of the ld. Sr. DR that provision of Section 159 of the Act applies, does not support the facts in the present case, insofar as Smt. Radhadevi Mahawar herself has filed her return in her individual capacity for the relevant assessment year much before the notice issued on the deceased assessee. The deceased assessee is not alive even for one day during the relevant assessment year. A cash deposit in the bank account of the assessee and which has been offered by Smt. Radhadevi Mahawar cannot be shifted from a live person to a deceased assessee just because he was one of the joint holders of the account. This being so, as the assessment u/s.144 of the Act has been done for the assessment year 2017-2018 on the deceased person, the said assessment order passed u/s.144 of the Act in the name of deceased Suresh Kumar Mahawar on 29.10.2019, stands annulled. ITA No.59/CTK/2024 5 7. In the result, appeal of the assessee is allowed. Order dictated and pronounced in the open court on 22/04/2024. Sd/- (जाजज माथन) (GEORGE MATHAN) न्यानयक सदस्य / JUDICIAL MEMBER कटक Cuttack; ददनाांक Dated 22/04/2024 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतलऱपऩ अग्रेपषत/Cop.y of the Order forwarded to : आदेशान ु सार/ BY ORDER, (Assistant Registrar) आयकर अऩीऱीय अधधकरण, कटक/ITAT, Cuttack Date Initial 1. Draft dictated on 22.04.24 Sr.PS 2. Draft placed before author 22.04.24 Sr.PS 3. Draft proposed & placed before the second member JM/AM 4. Draft discussed/approved by Second Member. JM/AM 5. Approved Draft comes to the Sr.PS/PS Sr.PS/PS 6. Kept for pronouncement on Sr.PS 7. File sent to the Bench Clerk Sr.PS 8. Date on which file goes to the OS 9. Date on which file goes to the AR 10. Date of dispatch of Order. 1. अऩीऱाथी / The Appellant- Suresh Kumar Mahawar, L/H. Smt. Radha Devi Mahawar, 25, Ganesh Market, Uttareswar, Soro, Balasore-756045 2. प्रत्यथी / The Respondent- ITO, Ward-1, Balasore 3. आयकर आय ु क्त(अऩीऱ) / The CIT(A), 4. आयकर आय ु क्त / CIT 5. ववभागीय प्रयतयनधध, आयकर अऩीऱीय अधधकरण, कटक / DR, ITAT, Cuttack 6. गार्ज पाईऱ / Guard file. सत्यावऩत प्रयत //True Copy//