TaxTMI 
TaxTMI 
2022 (9) TMI 654
X X X X Extracts X X X X
X X X X Extracts X X X X
....the matter. Thereafter, on 9.6.2022, a letter addressed to the Hon'ble Vice- President and the Bench was filed by the ld.counsel for the assessee stating that despite their best efforts the family members of the deceased assessee have not cooperated with them and none of the family members was ready to substitute herself or himself as legal heirs of the deceased assessee; further that they were not providing the details required to prepare the matter, and therefore, the counsel sought to withdraw himself from representing the matter. Subsequently, notices were sent to the assessee, which have remained un-delivered. 3. Considering the facts as above that the assessee is no more, whereabouts of his family members are not known, the ld.cousnel for the assessee who was earlier representing the matter has withdrawn from the matter and his family members are stated by the ld.counsel to be non cooperative ,both with respect to disclosing the legal heirs of the assessee so that the appeal can be continued in the names of legal heirs and also in the preparation of the appeal, in view of this, there is no recourse left with me, but to proceed with the hearing of the appeal ex parte. 4.....
X X X X Extracts X X X X
X X X X Extracts X X X X
....of salary income especially when the appellant was employed with the government agency and appropriate TDS was being deducted. 7. The ld.CIT(A) erred in law and on facts in upholding the addition of Rs.11,51,000- u/s.68 of the Act on account of unexplained cash credits." 7. Ground Nos.2, 3, 4 and 5 are legal grounds raised by the assessee challenging validity of the assessment framed under section 148 of the Act on primarily three grounds, viz - i) Insufficiency of material to form a reasonable belief of escapement of income, which is an essential pre-requisite for initiating re-assessment proceedings under section 148 of the Act; ii) No notice under section 143(2) of the Act being issued on the assessee; iii) Notice under section 148 of the Act being issued to dead person. 8. I find that out of the above three grounds on which validity of reassessment have been challenged before us, ground no(.i )and (iii) were also raised before the ld.CIT(A). Vis-à-vis the assessees argument, as per Ground No.iii, that the notice was issued to a dead person, and therefore, reassessment framed was bad, I find that the ld.CIT(A) has dealt with th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....oted that in the present case, the department was never informed by the family of the assessee that the assessee was no more and had expired. The ld.CIT(A) has noted that even though notice under section 148 was received by the assessee's family, but none of the family members informed the department that the assessee has died. She has stated that it is the first time before her that the legal heir of the assessee has claimed that the assessee has died. She thereafter placed reliance on the decision of Hon'ble jurisdictional High Court in the case of Chandreshbhai Jayantibhai Patel Vs. ITO, 101 taxman.com 362 and pointed out that notice issued in the name of deceased person have been held to invalidate reassessment proceedings only in the circumstances that legal heirs informed the department of the demise of the assessee, and despite the same, the AO still continued with the proceedings in the name of the deceased assessee. I have noted that the ld.CIT(A) further distinguished the case law relied upon by the ld.counsel for the assessee before her in support of her contentions in the case of Alamelu Veerappan Vs ITO, 95 taxamnn.com 155 wherein the notice issued in the name of dead ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ourt in the case of SMt A Sridevi [2018] 100 taxmann.com 434 wherein it is held as under: "..... 69, read with sections 147 and 149, of the Income-tax Act, 1961 - Unexplained investment (Loans/advances) Assessment year 2009-10 - Assessee filed her return of income which was processed under section 143(1) - Subsequently, case was reopened by issuing a notice under section 148 and, further, reassessment order was passed making addition in respect of unexplained cash credit - Later on, Income Tax Officer, once again reopened assessment by issuing notice under section 148 - Reason furnished for reopening of assessment was that assessee had given certain advance to one, 'SN' for purchase of property and source of amount so paid was not explained - Assessee raised an objection that there was full and true disclosure of all material facts as when earlier reassessment proceedings took place; she had filed all necessary details including cash flow, which reflected payments made to SN as advance, and, therefore, reopening of assessment was not permissible - It was noted that merely because a cash flow : could not be taken to statement was appended by assessee it dc ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n had been filed by the assessee and cash was found to be deposited in the bank account of the assessee, but she noted that thereafter necessary inquiry was sought to be made by the Revenue from the assessee seeking explanation of the cash deposited. And since no response was forthcoming from the assessee, it is only thereafter that the AO recorded reasons for forming belief of escapement of income. 13. We do not find any infirmity in the order of the ld.CIT(A). The information that there was no return filed by the assessee and there was substantial cash found deposited in the bank account of the assessee was sufficient for formation of belief of escapement of income, when the assessee did not explain the source of the same to the Revenue in the investigation conducted prior to the issuance of notice under section 148 of the Act. The ld.CIT(A) has relied upon judicial decisions in this regard. I therefore see no reason to interfere in the order of the ld.CIT(A) dismissing the assessee's ground for holding the assessment order passed, as has been invalid on the ground of insufficiency of material for forming the belief of escapement of income. 14. Taking up now the third argum....