SUKHWINDER KAUR,KAITHAL, HARYANA V. INCOME TAX OFFICER, KAITHAL, HARYANA

ITA 612/CHANDI/2023

AI Insights

This case involves an appeal by the legal heir of the deceased assessee, Sukhwinder Kaur, against the order of the CIT(A)/NFAC, Delhi, which confirmed the addition of Rs. 2,59,37,160 as unexplained income under section 69A of the Income Tax Act, 1961. The original assessment was made ex parte due to the non-filing of income tax returns by the deceased, based on substantial cash deposits in her bank accounts. The Tribunal found that the non-compliance was not willful but due to genuine circumstances, including the rural residence of the assessee and the use of her son's email for statutory notices, which he, being settled abroad, did not monitor.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 669112 (ITAT-CHANDIGARH)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2015-2016
• Laws Referred To: Income Tax Act
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: RANJIT KAUR; VIRTUAL MODE
• Assessee Lawyers: B.M. MONGA
• Keywords: Set aside

Judgement Text

"आयकर अपीलीय अिधकरण,चǷीगढ़ Ɋायपीठ “बी” , चǷीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “B”, CHANDIGARH HEARING THROUGH: HYBRID MODE ŵी लिलत क ुमार, Ɋाियक सद˟ एवं ŵी मनोज क ुमार अŤवाल, लेखा सद˟ BEFORE: SHRI. LALIET KUMAR, JM & SHRI. MANOJ KUMAR AGGARWAL, AM आयकर अपील सं./ ITA No. 612/Chd/ 2023 िनधाŊरण वषŊ / Assessment Year : 2015-16 Sukhwinder Kaur (Since Decesased), Through legal heir Shri Satwinder Singh, Tehbutana Parta Plat, Kharkhada, Guhla, Kaithal- 136034, Haryana बनाम The ITO Ward-1, Kaithal, Haryana ˕ायी लेखा सं./PAN NO: BWRPK5314H अपीलाथŎ/Appellant ŮȑथŎ/Respondent िनधाŊįरती की ओर से/Assessee by : Shri B.M. Monga, Advocate, and Shri Rohit Kaura, Advocate राजˢ की ओर से/ Revenue by : Dr. Ranjit Kaur, Addl. CIT, Sr. DR (Virtual Mode) सुनवाई की तारीख/Date of Hearing : 24/06/2025 उदघोषणा की तारीख/Date of Pronouncement : 24/06/2025 आदेश/Order PER LALIET KUMAR, J.M: This is an appeal filed by the Assessee against the order of the Ld. CIT(A)/NFAC, Delhi dt. 14/08/2023 pertaining to Assessment Year 2015-16. 2. Briefly the facts of the case are that the assessment in this case was framed ex parte against Late Smt. Sukhwinder Kaur, who had not filed her return of income for the relevant year. Based on information relating to substantial cash deposits in her bank accounts, the case was reopened and addition of Rs. 2,59,37,160/- was made under section 69A of the Act, treating the deposits as unexplained income. 3. Against the order of the AO the assessee went in appeal before the Ld. CIT(A) who has also decided ex parte due to continued non-compliance. 2 4. Against the order of the Ld. CIT(A) the assessee had preferred an appeal before the Tribunal, challenging the order passed by the CIT(A) confirming the addition made under section 69A of the Act. During the pendency of the appeal, the assessee unfortunately passed away. Pursuant to her demise, the legal heirs of the assessee have filed an amended Form No. 36 before this Tribunal, bringing themselves on record. Along with the amended form, an affidavit executed by the deceased assessee during her lifetime has also been placed on record, wherein she explained the reasons for her non-appearance before the lower authorities. It was stated that she was primarily an agriculturalist residing in a rural area and that the email ID used for service of statutory notices belonged to her son, who is settled abroad and was unaware of the proceedings. These facts, as brought on record by the legal representatives, indicate that the earlier non-compliance was not deliberate but due to genuine and unavoidable circumstances. 4.1 It was submitted that the non-appearance before the lower authorities was not willful. The deceased assessee had executed an affidavit during her lifetime, explaining that she was an agriculturalist and resided in a rural area. Further, it was contended that the email address on which the statutory notices were sent belonged to her son, who is permanently settled abroad and had no occasion to receive or act on such notices. Thus, the explanation for non-compliance was bona fide and supported by material evidence. 4.2 It was further submitted that there was a plausible and sufficient cause for non-appearance both at the assessment stage and in appellate proceedings, and the matter deserves to be restored to the file of the Assessing Officer for proper examination after affording due opportunity. 5. The ld. DR opposed the prayer but could not rebut the factual submissions made by the legal representative of the deceased assessee. 6. We have heard the rival contentions and perused the records. It is undisputed that both the assessment order and the appellate order were 3 passed ex parte. In the interests of justice, and considering that the assessee had expressed her desire to explain the matter during her lifetime and her legal representative has now undertaken to cooperate with the proceedings, we find it just and proper to set aside the orders of the lower authorities. 6.1. Accordingly, we restore the matter back to the file of the Assessing Officer for a de novo assessment after giving due opportunity to the legal representative of the deceased assessee to furnish evidence and explanation in respect of the credit entries and cash deposits. 6.2. The assessee is directed to fully cooperate with the Assessing Officer and not seek unnecessary adjournments. The Assessing Officer shall also provide adequate opportunity to rebut the findings recorded earlier. 7. In the result, the appeal is allowed for statistical purposes. (Order pronounced in the open Court on 24/06/2025 ) Sd/- Sd/- मनोज क ुमार अŤवाल लिलत क ुमार (MANOJ KUMAR AGGARWAL) (LALIET KUMAR) लेखा सद˟/ ACCOUNTANT MEMBER Ɋाियक सद˟ /JUDICIAL MEMBER AG आदेश की Ůितिलिप अŤेिषत/ Copy of the order forwarded to : 1. अपीलाथŎ/ The Appellant 2. ŮȑथŎ/ The Respondent 3. आयकर आयुƅ/ CIT 4. आयकर आयुƅ (अपील)/ The CIT(A) 5. िवभागीय Ůितिनिध, आयकर अपीलीय आिधकरण, चǷीगढ़/ DR, ITAT, CHANDIGARH 6. गाडŊ फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar "