2020 (5) TMI 377

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....osed to law, equity, weight of evidence, probabilities, facts and circumstances of the case. 2. The learned CIT(A) is not justified in passing the appellate order in the name of the deceased appellant, even after it was brought to the notice that the appellant had passed away vide letters dated 08.06.2018 and 15.05.2019 of the authorized representative of the appellant and accordingly, the impugned order passed by the learned CIT(A) deserves to be cancelled. 3. Without prejudice to the above, the learned CIT(A) is not justified in upholding the addition of Rs. 5,87,801/- in respect of Sundry Creditors on the ground that the appellant had not filed confirmation of balance from these Sundry Creditors without appreciating tha....

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....ion is - (i) cash deposit was of Rs. 16,78,500, and (ii) for non-furnishing the details of sundry creditors of Rs. 5,87,801. The Assessing Officer passed order u/s 143(3) of the Act on 31.01.2013 resulting a demand of Rs. 8,98,191. Aggrieved, the assessee went in appeal before the CIT(A), who confirmed the order of the Assessing Officer, by observing as under: - "4. In the assessment order the AO has stated that, during the course of the assessment proceedings, the assessee was asked to furnish the confirmation from the creditors amounting to Rs. 5,87,801/-. The assessee has furnished statement copy from M/s.Zuari Industries Ltd and Nagarjuna Group for Rs. 1,42,649/- and 33,930/- respectively. It was not accepted since the copy of ....

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.... legal heirs after bringing them on record. 5. The learned Departmental Representative did not raise any serious objection to the argument of the learned AR. 6. I have heard the rival submissions and perused the material on record. In the present case, the assessee admittedly informed the CIT(A) vide letter dated 12th April, 2018 and also another letter dated 08th June, 2018, that Sri.R.Nagendra Swamy,expired and also enclosed the death certificate of Sri.R.Nagendra Swamy, to this effect. However, the CIT(A) passed the impugned order in the name of Sri.R.Nagendra Swamy only. At this point, I refer provisions of section 2(7) of the I.T.Act. From the reading of the above section, it is apparent that "assessee" means a person by whom any....

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....ceased. Similarly, section 159(2) also empowers the Assessing Officer to take the proceedings against the legal representatives that he would have taken against the deceased had he survived. Section 159(2) nowhere authorizes the Assessing Officer to take the proceedings against the individual who has already expired, that is why the legal representatives, u/s 2(7) are regarded to be assessee. It emanates that the assessee in the case of a deceased person will be the person who are regarded as the legal heirs of the deceased as they can be regarded as a human being. In view of this, a person who has already expired cannot be regarded to be a human being as on the date when the order was passed. Only the legal heirs can be regarded as asse....