LATE SURESHGIR REP. L/R VIJAYA DEVI,HYDERABAD. V. INCOME TAX OFFICER, WARD-15(1), HYDERAAD.

ITA 350/HYD/2025

AI Insights

The case involves an appeal by the legal heirs of the late Sureshgir against the order of the CIT(A) sustaining the addition made by the Assessing Officer, which treated unexplained deposits in the bank account of the deceased as unexplained money under section 69A of the Income Tax Act, 1961. The appellant argued that the notices issued by the Assessing Officer were not served on the deceased, and after his demise, the CIT(A) passed an ex-parte order without considering the grounds of appeal. The Tribunal found that the proceedings were conducted ex-parte and the CIT(A) did not consider the appeal properly, leading to the decision to set aside the CIT(A)'s order and remand the case back to the Assessing Officer.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 708351 (ITAT-HYDERABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PAVITRAN KUMAR J.
• Assessee Lawyers: K A SAI PRASAD
• Keywords: Set aside

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD “SM-B” BENCH: HYDERABAD BEFORE SHRI VIJAY PAL RAO, VICE PRESIDENT AND SHRI MANJUNATHA G, ACCOUNTANT MEMBER ITA.No.350/Hyd./2025 Assessment Year 2017-2018 Late Sureshgir, Rep. L/R Smt. Vijaya Devi, HYDERABAD – 500 020 PAN DFFPS5999K vs. The Income Tax Officer, Ward-15(1), Hyderabad – 500 004. (Appellant) (Respondent) For Assessee : CA, K A Sai Prasad For Revenue : Shri Pavitran Kumar J. Sr. AR Date of Hearing : 09.07.2025 Date of Pronouncement : 16.07.2025 ORDER PER MANJUNATHA G. : This appeal has been filed by the Assessee against the order dated 08.01.2025 of the learned CIT(A)- National Faceless Appeal Centre [in short the “NFAC”], Delhi, relating to the assessment year 2017-2018. 2. Brief facts of the case are that, the appellant is an individual and having only the source of income from agricultural lands admeasuring 40 Acres at Atheli Village, 2 ITA.No.350/Hyd./2025 Vikarabad Mandal and District. The assessee is also a Member of Horticulture Society. Since the assessee has no taxable income and, therefore, not filed any returns of income even for the assessment year 2017-2018. As per the AIMS Data available with the Department, the assessee has deposited a sum of Rs.6 lakhs during the demonetization period. Since the assessee has not filed his return of income for the impugned assessment year 2017-2018, th Assessing Officer issued notice u/sec.142(1) of the Income Tax Act, 1961 [in short \"the Act\"] in the month of February, 2018, 17.06.2019, 03.07.2019 and 23.08.2019 calling the assessee to furnish bank statement and sources for the deposits. The assessee did not respond to the above notices. Therefore, the Assessing Officer issued summons u/sec.133(6) of the Act and obtained the information from the Bank of Baroda, Alwal Brnach. As seen from the account statement, the assessee has total credits of Rs.31,30,830/- out of which, cheques totalling to Rs.7 lakhs were bounced and therefore, the Assessing Officer worked- out the total credits at Rs.24,30,830/-. In absence of any 3 ITA.No.350/Hyd./2025 explanation of the source for the deposits, the Assessing Officer treated the entire deposits of Rs.24,30,830/- as unexplained and brought to tax as unexplained money u/sec.69A of the Income Tax Act, 1961. 3. Aggrieved by the assessment order passed by the Assessing Officer, the assessee preferred an appeal before the learned CIT(A). Before the learned CIT(A), it was the submission of the assessee that, the assessee viz., Sureshgir was fell ill on 21.12.2023 and passed away on 21.12.2023. The legal-heirs of the assessee noticed the email served with respect to date of hearing of the appeal and immediately, approached the Authorised Representative to file appeal by collecting data from all the possible sources with a delay. However, the learned CIT(A), did not satisfy with the explanation offered by the legal-heirs of the assessee, passed an ex-parte order by sustaining the addition made by the Assessing Officer 4. CA, K A Sai Prasad, Learned Counsel for the Assessee argued that, the notice issued by the Assessing Officer, during course of assessment proceedings, were not 4 ITA.No.350/Hyd./2025 served on the assessee. Further, when the appellate proceedings are pending before the learned CIT(A), the assessee passed away on 21.12.2023 and this fact has been brought to the notice of the learned CIT(A). However, the learned CIT(A) passed the ex-parte order in the name of the dead person i.e., Sureshgir-appellant on the ground that, no documentary evidences such as death certificate and proof of legal heir has been provided to establish the authority to represent the appellant estate. No doubt, the assessee could not file relevant evidences including death certificate. However, the assessee now filed an Order of the Court which declared Smt. Vijaya Devi wife of late Sureshgir- appellant, as the legal heir and submitted that, the appeal may be set aside to the file of the learned CIT(A) to give another opportunity of hearing to the assessee, to explain it’s case. 5. Shri Pavitran Kumar J, learned Sr. AR for Revenue, on the other hand, relied on the orders of the authorities below and submitted that, since the documentary evidence such as legal-heir certificate could 5 ITA.No.350/Hyd./2025 not be produced by the assessee to represent the estate of the assessee viz., Suresh Gir and also failed to explain the source for credits in bank account, the learned CIT(A) has dismissed the appeal of the assessee. He further submitted that, even during the course of assessment proceedings, despite several notices issued u/sec.142(1) of the Act, the assessee did not file any documentary evidence to prove it’s case. Therefore, the Assessing Officer has rightly made the impugned addition of Rs.24,30,830/- in the hands of the assessee. In absence of supporting documentary evidences filed by the assessee before the learned CIT(A), the learned CIT(A) sustained the addition made by the Assessing Officer. He, therefore, submitted that, the order of the learned CIT(A) should be upheld. 6. We have heard both the parties, perused the material on record and gone through the orders of the authorities below. We find that, assessment proceedings before the Assessing Officer are ex-parte. Before the CIT(A), although, the assessee has informed about the demise of the assessee, but, the learned CIT(A) passed the order on 6 ITA.No.350/Hyd./2025 the dead person. Further, the learned CIT(A) has not considered even the grounds of appeal filed by the assessee while disposing of the appeal. Since the proceedings before the Assessing Officer and the learned CIT(A) are ex-parte and further, the learned CIT(A) passed order in the name of the dead person, in our considered view, the matter needs to be set-aside to the file of Assessing Officer to give another opportunity of hearing to the assessee. Thus, we set-aside the order of the learned CIT(A) and restore the issue back to the file of Assessing Officer for de novo consideration. The Assessing Officer is directed to reconsider the issue by providing another opportunity of hearing to the assessee. Needless to say, the assessee’s legal heirs shall furnish necessary evidence as and when the case was posted for hearing in support of their contention. Accordingly, the grounds of the appeal of the assessee are allowed for statistical purposes. 7. In the result appeal of the assessee is allowed for statistical purposes. 7 ITA.No.350/Hyd./2025 Order pronounced in the open Court on 16.07.2025. Sd/- Sd/- [VIJAY PAL RAO] [MANJUNATHA G] VICE PRESIDENT ACCOUNTANT MEMBER Hyderabad, Dated 16th July, 2025 VBP Copy to 1. Late Sureshgir, Rep. L/R Smt. Vijaya Devi, HYDERABAD. C/o. Katrapati & Associates, 1-1-298/2/B/3, Sowbhagya Avenue Apts. 1st Floor, Ashok Nagar, Street No.1, Hyderabad – 500 020. Telangana. 2. The Income Tax Officer, Ward-15(1), IT Towers, AC Guards, Masab Tank, Hyderabad – 500 004. Telangana 3. The Pr. CIT, Hyderabad. 4. The DR ITAT “SM-B” Bench, Hyderabad. 5. Guard File. //By Order// //True Copy// "