TMI Blog2024 (3) TMI 1006X X X X Extracts X X X X X X X X Extracts X X X X ..... monetization period, the assessee made cash deposits in his three Bank Accounts. In the meanwhile, the assessee died on 28.01.2019. Thereafter the final show cause notice was issued by the Ld. A.O. on one of the legal heir namely Shri Vijay Laxmichand Demla filed a detailed letter that his deceased father has six sons and given their details. Further he refused to accept any responsibility, since he is not sole legal heir for the estates of his deceased father and also he was not in possession of any details/documents regarding his father s cash deposits which was rejecgted by AO. Assessing Officer when put to notice about the death of the assessee and the details of the six legal heirs of the deceased assessee, A.O. ought not have proceede ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rn 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 cash deposit of Rs. 7,00,000/- in Bank of Baroda, Rs. 2,00,000/- in Andhra Bank and Rs. 3,83,000/- in State Bank of India. The assessee was issued with notices u/s. 142(1) on 13.03.2018 and 03.06.2019 whereby the assessee was asked to furnish the explanation regarding cash deposits made in his bank accounts during the demonetization period. As there was no response, a final show cause notice dated 25.09.2019 asking for explanation for the cash deposits made during the demonetization period. The assessee s one of the legal heir namely Shri Laxmichan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed 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. Laxmichand Pahlumal Demla found out that he had transferred amount of Rs. 2,00,000/- through Cheque (Cheque No. 726813) in the account of Shri Vijay Laxmichand Demla (Legal Heir) bearing A/c No. 176710100001963 in Andhra Bank. Therefore addition is proposed to be made u/s 69A of the IT Act. 2.2. Thus the Assessing Officer made an addition of Rs. 27,65,420/- under section 69 as unexplained income and charged to tax the same u/s. 115BBE of the Act at 60% and demanded tax thereon. The A.O. also initiated penalty proceedings u/s. 272A(1)(d) for non-compliance of noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal 1. The Ld. Commissioner of Income Tax (Appeals) erred in law and on facts in upholding the jurisdictional defective Assessment Order dated 17.12.2019 passed without bringing on record all the legal heirs (representatives) despite being intimated about the same by the Appellant. 6. Ld. Counsel Shri Abhimanyu Singh Bhati appearing for the assessee submitted before us copy of the letter dated 03.12.2019 filed by the assessee before the Ld. A.O., which reads as follows: In response to the above referred notice received by me on 06.12.2019, I would like to submit and respond as under. 1. My father Late Shri Laxmichand Demla died on 28/01/19 It seems that the above notice has been served upon me for the scrutiny assessment of my father Late ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ld. Sr. D.R. Shri Urjit B. Shah appearing for the Revenue supported the order passed by the Lower Authorities and requested to uphold the same. 8. We have given our thoughtful consideration and perused the materials available on record. It is undisputed fact for the Asst. Year 2017-18, the assessee has not filed his Return of Income, since there is no taxable income in his hands and also for the reasons of wound-up of his business activities. However during demonetization period, the assesse made cash deposits in his three Bank Accounts for which notice u/s. 142(1) was issued first time on 13.03.2018 and thereafter on 03.06.2019. In the meanwhile, the assessee Shri Vijay Laxmichand Demla died on 28.01.2019. Thereafter the final show cause ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r on the estate of the deceased. Thus the Assessing Officer having not included all the legal heirs of the deceased assessee and framed the assessment only against one of the legal heir is against the provisions of law and the assessment is invalid in law. Thus the entire assessment is hereby quashed. 11. This view of ours is supported by the Jurisdictional High Court in the case of Chooharmal Wadhuram (cited supra) held as follows: Where a person dies leaving more than one legal representatives, the ITO must proceed to assess the total income of the assessee by serving notice under s. 22(2) or s. 34, as the case may be, on all the legal representatives. If the notice is served on only one legal representative, there would be no complete re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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