2020 (3) TMI 1497

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.....CIT(A) has erred in dismissing the appeal being non-maintainable and confirmation of addition of Rs. 57,01,100/-. 3. Brief facts of the case are that, on the basis of data analysis and information gathered during the phase of on-line verification under 'operation clean money', the AO came to know that cash was deposited in saving bank account No. 30814030119 with State Bank of India, Nirnaynagar Branch during the demonetization period. Cash deposited by the assessee during this period amounted to Rs. 10,32,000/-. The AO further found that total credit entries in this account were of Rs. 57,01,099/-. These transactions included cheque transactions also. The bank account was in the name of Keshavlal Somnath Panchal. He....

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....rders of the Revenue authorities submitted that Shri Keshavlal Somnath Panchal expired on 2.10.2017; notice under section 142(1) was issued on 12.3.2018. Thus, this notice was issued on a dead person. The assessment order has also been passed on dead person. Hence, assessment order is void ab initio and deserves to be quashed. As far as dismissal of the appeal by the ld.CIT(A) is concerned, he filed a note; contents therein read as under: "1. With reference to above appeal against order u/s. 144 has been made as appeal before the CIT (A) was manually filed, as the assessee has died even before assessment proceedings initiated. 2. The appeal has been dismissed by the CIT (A) simply on the ground that manual appeal is not ma....

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.... other hand, the ld.DR was unable to controvert the contentions of the ld. counsel for the assessee. 7. We have considered rival submissions and gone through the record carefully. We find that before service of notice under section 142(1) Shri Keshavlal Somnath Panchal had already expired. His legal heirs did not file return for this assessment year. Therefore, the right course for the AO is to find out L/Rs, and more particularly, L/R who has inherited assets and liabilities of Shri Keshavlal Somnath Panchal because L/R is liable to pay taxes of the deceased only equivalent to the property inherited from the deceased. For example, in the present case, if the assessment order is finalized, but later on Smt. Champaben Keshavlal Patel come....