2025 (5) TMI 27

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....IT(A) has erred in quashing the assessment order and deleting the addition of Rs. 1,47,28,200/- made by AO on account of unexplained credit transaction reflected in bank account ignoring that there was cash deposit in the bank of the deceased assessee during the relevant year (which was much after the death of Sri Pachanbhai Muljibhai Chavda) and the AO was under the best bonafide belief that the assessee was alive, when he issued the notice. (b) The CIT(A) has erred in holding that the AO had framed the assessment in a deceased person's name, whereas the AO has clearly mentioned in the assessment order that he had got notices served on the legal heir of the deceased assessee who did not respond to any of the notices. In fact the A.O.....

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...., alter and/or to amend all or any the ground before the final hearing of the appeal." 3. In this case, notice u/s. 142(1) dated 29-12-2017 was issued to the assessee to prepare a true and correct return of income in respect of which the assessee is assessable under the Income Tax Act, 1961 during the assessment year 2017-18. The Assessing Officer on the basis of data analytics and information observed that the assessee has deposited substantial cash in bank account during the demonetization period and has not filed the income tax return. The said data reveals that the assessee deposited total cash of Rs. 22,47,500/- in his bank accounts during the demonetization period. The assessee has not filed return u/s. 139 and has not responded noti....

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....that there was a cash deposit in the bank account of the deceased assessee during relevant year which was much after the death of Shri Panchanbhai Muljibhai Chavda and therefore the Assessing Officer was under bonafide belief that the assessee was alive when he issued the notice. 6. The ld. A.R. submitted that the Assessing Officer in para 6 has categorically mentioned that the ward inspector deputed for the purpose of delivering the show cause notice to the legal heir Shri Panchanbhai Muljibhai Chavda by requesting the legal heir of the assessee to furnish the details on or before 23-12-2019. Thus, the Assessing Officer was very well aware that Shri Panchanbhai Muljibhai Chavda is deceased. The ld. A.R. relied upon the Hon'ble Gujarat Hig....