KUSUM GEORGE JACOB,BHOPAL V. ITO - 2(1) BHOPAL, AAYKAR BHAWAN, HOSHANGABAD

ITA 657/IND/2025

AI Insights

The case involves Kusum George Jacob, the legal heir of the late Shri George Jacob, who appealed against the order of the Commissioner of Income-Tax (Appeals) - NFAC, Delhi. The appeal arose from an assessment order passed by the ITO-2(1), Bhopal, under sections 147/144 of the Income-tax Act, 1961, for the Assessment Year 2012-13. The AO had made an addition of Rs. 10,00,000 as unexplained investment in bonds of 'Shriram Transport Finance Co. Ltd.' The ITAT noted that the assessee did not file a return of income for the relevant assessment year, and despite several notices, did not comply, leading to a best judgment assessment under section 144. The ITAT allowed the appeal for statistical purposes and remanded the case for fresh assessment, emphasizing the need for a fair hearing and consideration of new evidence.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 840495 (ITAT-INDORE)
• Duration Of Justice: 6 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 29-07-2025
• Other Referred Cases: Collector, Land Acquisition Vs Mst. Katiji and others
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: FORASSESSEEVERYHUMBLYSUBMITTEDTHATTHEREISNOLETHARGY; FORREVENUEDOESNOTHAVE; FORASSESSEECARRIEDUSTOAPAPERBOOKCONSISTINGOFPAGES; SHRIASHISHPORWAL
• Assessee Lawyers: SHRIGAGANTIWARI
• Keywords: Additional evidence; Unexplained investment; Principle of natural justice
• Section: 148; 144; 133(6)

Judgement Text

"Page 1 of 11 आयकरअपीलीयअिधकरण, इंदौरɊायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI B.M. BIYANI, ACCOUNTANT MEMBER AND SHRI PARESH M. JOSHI, JUDICIAL MEMBER ITA No.657/Ind/2025 (AY: 2012-13) Kusum George Jacob, (Legal Heir of Late Shri George Jacob), H.No.29/3, Power House Road, Near Railway Station, Bhopal बनाम/ Vs. ITO 2(1) Bhopal (Assessee/Appellant) (Revenue/Respondent) PAN: AAWPJ0194Q Assessee by Shri Gagan Tiwari, Adv. Revenue by Shri Ashish Porwal, Sr. DR Date of Hearing 18.02.2026 Date of Pronouncement 27/02/2026 आदेश/ O R D E R Per B.M. Biyani, A.M.: Feeling aggrieved by order of first appeal dated 18.06.2024 passed by learned Commissioner of Income-Tax (Appeals)-NFAC, Delhi [“CIT(A)”] which in turn arises out of assessment-order dated 12.12.2019 passed by learned ITO-2(1), Bhopal [“AO”] u/s 147/144 of Income-tax Act, 1961 [“the Act”] for Assessment-Year [“AY”] 2012-13, the assessee has filed this appeal. 2. At the outset, we note that the assessee “Shri George Jacob” expired before completion of assessment-proceedings by AO. Therefore, the AO Printed from counselvise.com Kusum George Jacob (Legal Heir of Late Shri George Jacob) ITA No. 657/Ind/2025 – AY 2012-13 Page 2 of 11 passed assessment-order in the name of “Late Shri George Jacob, Through Legal Heir”. Thereafter, the first-appeal before CIT(A) as well as present appeal before ITAT was/is being pursued by deceased assessee’s wife & legal heir “Kusum George Jacob”. Accordingly, the term “assessee” used in subsequent discussion shall, depending upon context and requirement, refer and mean the “deceased assessee” or “legal heir”. 3. The registry has informed that the present appeal is delayed by 335 days and therefore time-barred. The assessee has filed an application/ affidavit for condonation of delay; the same is scanned and re-produced for an immediate reference: Printed from counselvise.com Kusum George Jacob (Legal Heir of Late Shri George Jacob) ITA No. 657/Ind/2025 – AY 2012-13 Page 3 of 11 Printed from counselvise.com Kusum George Jacob (Legal Heir of Late Shri George Jacob) ITA No. 657/Ind/2025 – AY 2012-13 Page 4 of 11 Printed from counselvise.com Kusum George Jacob (Legal Heir of Late Shri George Jacob) ITA No. 657/Ind/2025 – AY 2012-13 Page 5 of 11 Printed from counselvise.com Kusum George Jacob (Legal Heir of Late Shri George Jacob) ITA No. 657/Ind/2025 – AY 2012-13 Page 6 of 11 4. The averments made by assessee in above application, which are self- explanatory and which do not require repetition, were discussed. Then, the Printed from counselvise.com Kusum George Jacob (Legal Heir of Late Shri George Jacob) ITA No. 657/Ind/2025 – AY 2012-13 Page 7 of 11 Ld. AR for assessee very humbly submitted that there is no lethargy, negligence, mala fide intention or ulterior motive of assessee in making delay and the assessee does not stand to derive any benefit because of delay. He requested for condonation of delay. The Ld. DR for revenue does not have any objection if the bench condones delay and accordingly left it to the wisdom of bench. We have considered the explanation advanced by assessee and in absence of any contrary fact or material on record, the assessee is found to have a “sufficient cause” for delay in filing present appeal. We find that section 253(5) of the Act empowers the ITAT to admit an appeal after expiry of prescribed time, if there is a “sufficient cause” for not presenting appeal within prescribed time. It is also a settled position by Hon’ble Supreme Court in Collector, Land Acquisition Vs Mst. Katiji and others 1987 AIR 1353, 1987 2 SCC 387 that whenever substantial justice and technical considerations are opposed to each other, the cause of substantial justice must be preferred by adopting a justice-oriented approach. Thus, taking into account the facts of case, the provision of section 253(5) and the decision of Hon’ble Supreme Court, we take a judicious view, condone delay, admit appeal and proceed with hearing. 5. The background facts leading to present appeal are such that the assessee “Late Shri George Jacob” was an employee of “Bharat Heavy Electricals Limited, Bhopal”. For AY 2012-13, the assessee did not file any return of income. The AO, on the basis of AIR information revealing that the Printed from counselvise.com Kusum George Jacob (Legal Heir of Late Shri George Jacob) ITA No. 657/Ind/2025 – AY 2012-13 Page 8 of 11 assessee made investment of Rs. 10,00,000/- in bonds of “Shriram Transport Finance Co. Ltd.” during the previous year 2011-12 relevant to AY 2012-13, issued notice dated 27.03.2019 u/s 148 to assessee for making assessment u/s 147. The AO also issued follow-up notices u/s 142(1). However, the assessee did not make any compliance. Ultimately, the AO called information directly from “Shriram Transport Finance Co. Ltd.” u/s 133(6) and issued show-cause notice to assessee for making best judgement assessment u/s 144 but this show-notice also remained un-complied by assessee. Finally, the AO completed assessment u/s 144 after making an addition of Rs. 10,00,000/- on account of unexplained investment in bonds. Aggrieved, the assessee carried matter in first-appeal before CIT(A) but could not make representation, hence the CIT(A) dismissed appeal of assessee and upheld AO’s order. Now, the assessee has come in next appeal before us. 6. The sole issue involved in present appeal is the addition of Rs. 10,00,000/- made by AO on account of unexplained investment in bonds of “Shriram Transport Finance Co. Ltd.” 7. Ld. AR for assessee carried us to a Paper-Book consisting of 9 pages; the “Index-Cum-Certification” page of same is scanned and re-produced below: Printed from counselvise.com Kusum George Jacob (Legal Heir of Late Shri George Jacob) ITA No. 657/Ind/2025 – AY 2012-13 Page 9 of 11 Printed from counselvise.com Kusum George Jacob (Legal Heir of Late Shri George Jacob) ITA No. 657/Ind/2025 – AY 2012-13 Page 10 of 11 8. By referring to various documents placed in Paper-Book as per above Index, the Ld. AR attempted to demonstrate that the assessee received proceeds of retirement benefits from “Bharat Heavy Electricals Limited, Bhopal” and the same proceeds were utilized for making impugned investment in the bonds of “Shriram Transport Finance Co. Ltd.” However, Ld. AR asserted in open court, which is also mentioned in the Certificate given just below “Index” in Paper-Book (re-produced above), that those documents were not filed before AO. Further, the CIT(A) has also not examined these documents. Therefore, those documents constitute additional evidences and require verification by AO. After discussions, learned Representatives of both sides came to a consensus for remanding this matter to the file of AO for a fresh adjudication. 9. In view of above; having regard to the principle of natural justice and also bearing in mind that no prejudice would be caused to revenue if the present matter is restored at the level of AO, we remand this matter back to the file of AO for adjudication afresh, at the risk and responsibility of assessee. The AO shall give necessary opportunity of hearing to assessee and pass an appropriate order uninfluenced by his earlier order. The assessee is also directed to remain vigilant and ensure participation in the hearings as may be fixed by AO and do not seek unnecessary adjournments failing which the AO shall be at liberty to pass appropriate order in accordance with law. Ordered accordingly. Printed from counselvise.com Kusum George Jacob (Legal Heir of Late Shri George Jacob) ITA No. 657/Ind/2025 – AY 2012-13 Page 11 of 11 10. Resultantly, this appeal is allowed for statistical purpose. Order pronounced in open court on 27/02/2026 Sd/- Sd/- (PARESH M. JOSHI) (B.M. BIYANI) JUDICIAL MEMBER ACCOUNTANT MEMBER Indore िदनांक/Dated : 27/02/2026 Patel/Sr. PS Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order E COPYSr. Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore Printed from counselvise.com "