9911796707
TMI Blog2024 (3) TMI 1006X X X X Extracts X X X X X X X X Extracts X X X X ..... er 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 cash deposit of Rs. 7,00,000/- in Bank of Barod ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 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. Laxmichand Pahlumal Demla found out that he had transferre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty 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 defective Assessment Order dated 17.12.2019 passed without bringing on record all the legal heirs (representativ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tled 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. 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 pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 of the asset so charged, disposed of or parted with." 10. Admittedly the legal heir Shri Vijay Laxmichand Demla is not only the legal heir on the estate of the deceased. Thus the Assessing Officer having not included all the legal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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