2024 (3) TMI 1006

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....], Delhi arising out of the assessment order passed under section 144 of the Income Tax Act, 1961 [herein after referred as the Act] relating to the assessment year 2017-18. 2. The brief facts of the case is that the appellant before us is one of the legal heirs of Late Shri Laxmichand Pahlumal Demla, who was engaged in the business of stationary and regularly filing his Return of Income till Asst. Year 2016-17. Due to age factor (76 years), he wound up the business activity during the Financial Year 2014-15 thereby he has not filed his Return of Income for the Asst. Year 2017-18 being below taxable income. The assessee deceased on 28.01.2019. 2.1. During the demonetization period (namely 08.11.2016 to 30.12.2016), the assessee made c....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

..../12/2019 in which he was informed about the provisions of section 159 of the IT Act and assessee's legal heir is deemed to be an assessee in this case. 5. The assessee's legal heir has failed to furnish any details like nature of income earned, details of bank account(s), details of cash deposits made in the bank account(s), sources of cash deposits, details of cash deposits made during demonetization period, along with sources thereof. The assessee's legal heir has denied that he does not have any documents of his father in his possession and refused to accept any responsibility in the matter vide his letter received in this office dated 12/12/2019. But the department after perusal of the bank statement of the assessee i.e....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....x (Appeals) erred in law and on facts in failing to provide sufficient opportunity to the appellant. 3. The learned Commissioner of Income-tax (Appeals) erred in law and on facts in summarily dismissing the grounds No. 3 to 5 of the Appellant without recording in the order points for determination, decisions and reasons thereon as specified in provisions of section 250(6) of the Income Tax Act, 1961. 4. The learned Commissioner of Income-tax (Appeals) erred in law and on facts in confirming the addition to the tune of Rs. 27,65,420/- as income from undisclosed sources. Additional Ground of Appeal 1. The Ld. Commissioner of Income Tax (Appeals) erred in law and on facts in upholding the jurisdictional defe....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....r in my possession. I refuse to accept any responsibility in the matter solely. Kindly take the above facts on your record and oblige. 6.1. The Ld. Counsel placed on record, settled principle of law on the assessment of legal representatives by the Hon'ble Gujarat High Court in the case of Chooharmal Wadhuram Vs. CIT reported in (1971) 80 ITR 360, wherein it was held that the deceased had admittedly more than one legal representatives and notice for reassessment was served only on one of them, proceedings were invalid in the absence of material to show that such legal representative represented the entire estate of the deceased with the consent, express or implied, of the other legal representatives. 7. Per contra, the Ld. Sr....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... assessee, Ld. A.O. ought not have proceeded with only one of the legal heir namely Shri Vijay Laxmichand Demla in spite of his specific objection. Sub-section (4) of Section 159 of the Act reads as follows: "159. Legal Representatives ................................ ............................... ................................ (4) Every legal representative shall be personally liable for any tax payable by him in his capacity as legal representative if, while his liability for tax remains undischarged, he creates a charge on or disposes of or parts with any assets of the estate of the deceased, which are in, or may come into, his possession, but such liability shall be limited to the value o....