2014 (7) TMI 1209 - AT - Income Tax

Tribunal grants appeal, stresses due process for legal heirs, remits matter for fair hearing

The Tribunal allowed the appeal for statistical purposes, emphasizing due process and upholding the rights of legal heirs. The matter was remitted back to ... Assessment against late assessee - legal heirs of the assessee were not brought on record before passing the order by Ld. CIT (A) - Held that:- We find merit in the submission of the Ld.AR. The Ld. A.R. has produced the death certificate of the assessee before us in order to establish that the assessee had expired on 03/01/2013 ie., before the date of the order of Ld.CIT(A) on 28/03/2013. Therefore in the interest of justice, we hereby remit the matter back to the file of the Ld. CIT (A) to pass appropriate order as per law and merits after bringing the legal heirs on record and affording sufficient opportunity to them of being heard. Issues:1. Appeal against the order of the Commissioner of Income Tax-IX, Chennai dated 28.03.2013 in ITA No.324/11-12.2. 11 grounds raised in the appeal by the assessee.Analysis:1. The appeal was filed against the order of the Commissioner of Income Tax-IX, Chennai dated 28.03.2013 in ITA No.324/11-12, passed u/s 250 (6) of the Income-tax Act, 1961. The assessee raised 11 grounds in the appeal challenging various aspects of the order.2. The assessee contended that the order of the Commissioner of Income Tax (Appeals) was contrary to law, facts, and circumstances of the case, and prejudicial to their interests. It was argued that the Assessing Officer's order lacked jurisdiction, and the legal heirs of the appellant were not brought on record before passing the order under Section 250 of the Income Tax Act.3. The Commissioner of Income Tax (Appeals) confirmed the addition of long-term capital gains, which the assessee disputed. The appellant also argued against the invocation of section 50C and highlighted that the property was transferred as per a sale agreement, with no default on their part for the delay in property registration.4. The appellant further contended that the provisions of section 50C, if applicable, should only be invoked for a specific assessment year and in the hands of the correct individual. Additionally, discrepancies in the valuation of the property and the consideration amount were raised as grounds for appeal.5. During the proceedings, it was revealed that the assessee had passed away before the order was issued by the Commissioner of Income Tax (Appeals). The legal heirs of the assessee were not brought on record before the order was passed. Consequently, the Tribunal remitted the matter back to the Commissioner of Income Tax (Appeals) to pass an appropriate order after bringing the legal heirs on record and providing them with a fair opportunity to be heard.6. In conclusion, the Tribunal allowed the appeal of the assessee for statistical purposes, emphasizing the importance of due process and ensuring the rights of legal heirs are upheld. The order was pronounced on 7th July 2014 in Chennai.