The Delhi Bench of Income Tax Appellate Tribunal ( ITAT ) has directed re-adjudication noticing the death of assessee during the income tax assessment proceeding.
The assessee Salochna Devi is a legal heir of Rakesh Kausik (Rakes Kosik), Chanda Kosik. The case of the assessee was reopened under Section 147 of the Income Tax Act, 1961, on the basis of AIR information available on record, that the assessee had made cash deposit in his savings bank account with Canara Bank and Punjab National Bank.
In response to the statutory notice, no one attended the proceedings on behalf of the assessee. The Assessing Officer (AO) treated the cash deposits and interest income as unexplained income and made addition and assessed the income of the assessee.
N.S.Bhatnagar, on behalf of the assessee submitted that, the orders passed by the authorities below, were illegal and ab-initio void as the same had been passed in the name of a dead person. He also submitted that in respect of the merit of the addition, the assessee was also not given sufficient opportunity of hearing.
Maimun Alam,on behalf of the revenue submitted that,when the proceedings were initiated, deceased Rakesh Kausik was alive. He further placed reliance on the provision of section 159 of the Act and submitted that the proceedings would be deemed to be taken against the legal representative.
A single Bench of Kul Bharat, (Judicial Member) allowed the appeal observing that in the assessment order, AO had not stated that the proceedings were continued against the legal heir nor there was any mention of passing away of the assessee.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
