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2023 (11) TMI 199 - MADRAS HIGH COURTUndisclosed income (from equity transactions) - unexplained investment (by way of cash deposit) u/s 69 r/w Section 115 BBE - huge amount of money was transacted using the Firm's PAN number - Assessment against deceased partner - despite providing ample opportunities, the petitioner choose to remain silent and failed to answer to the notice issued u/s 142(1) - HELD THAT:- The retirement and dissolution deed filed along with the typed set of papers indicates that the petitioner has resigned from the partnership firm and therefore, the partnership firm was no longer in existence. After the dissolution deed was signed, no steps were taken by the petitioner's husband (late) Sripal Kumar Jain to make changes in the Bank Accounts maintained by the partnership firm to state that the firm continued to exist and that the business of the firm was being carried on by him as the sole proprietor. Also petitioner's Late husband died on 07.09.2021. The proceedings came to be initiated only after the death of assessee with the issuance of notice u/s 148 of the Income Tax Act, 1961. A portion of the notice issued u/s142(1) thus remains unanswered although they were posted in their web portal in accordance with the provisions of the Income Tax Act, 1961 read with Income Tax Rules, 1962. While passing the order, the respondent ought to have compared the income that was proposed to be added pursuant to notice dated 31.03.2022 with the income declared by the petitioner's deceased husband (late) while finalizing the assessment. There is no comparison. Court is inclined to set aside the impugned order and remits the case back to the respondent to pass a fresh order on merits and in accordance with law within a period of eight (8) weeks from the date of receipt of a copy of this order. Petitioner is directed to file all the documents that were called for in pursuant to the notice issued under Section 142(1) and give a proper reply to the various show cause notices issued to the petitioner. Petitioner is directed to co-operate with the respondent.
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