Case Law Details
Swaroop Kudalkar Vs Assessment Unit (ITAT Pune)
Ex-parte Assessment & NFAC Dismissal Set Aside in Legal Heir Case; Matter Remanded for Fresh Adjudication – ITAT Pune
The Pune Bench of the ITAT, in Swaroop Kudalkar (Legal Heir of Late Roshan Kudalkar) vs. Assessment Unit (ITA No.2132/PUN/2025, AY 2020-21, order dated 18-12-2025), set aside the ex-parte assessment as well as the ex-parte dismissal by CIT(A)/NFAC, holding that denial of effective opportunity violated principles of natural justice.
The Tribunal noted that the original assessee, who ran a petrol pump business, had passed away on 07-03-2021. Though the legal heir’s name stood registered on the Income-tax portal, notices issued u/s 148/148A(b) and subsequent appellate notices went unanswered, leading to an ex-parte assessment wherein the AO treated entire bank cash deposits as income and further estimated profit again on GST-reported turnover, resulting in double taxation.
ITAT observed that the business had regular books of account audited u/s 44AB, which were not examined at all by the AO, and the CIT(A)/NFAC dismissed the appeal merely for non-appearance without considering the audit material. Considering the peculiar facts involving death of the assessee, availability of audited accounts, and the mechanical ex-parte approach at both stages, the Tribunal held that one more opportunity was warranted.
Accordingly, the ITAT quashed the ex-parte appellate order, set aside the assessment, and remanded the matter to the AO for de-novo assessment after granting reasonable opportunity to the legal heir, with a clear direction to examine books, audit report, GST data and explanations on merits. The appeal was allowed for statistical purposes.
Author Bio
