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Income Tax

ITAT Remands ₹38.04 Lakh Tax Addition as Legal Heir Was Not Given Effective Opportunity

Case Law Details

TaxGuru Citation
2026 taxguru.in 4984
Case Name
Late Kiran Kumar Jain Vs ITO-1 (ITAT Indore)
Date of Judgement/Order
Only available for paid members
Related Assessment Year
2013-14
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Late Kiran Kumar Jain Vs ITO-1 (ITAT Indore)

The Income Tax Appellate Tribunal (ITAT), Indore Bench, set aside the order of the CIT(A) and remanded the matter back to the Assessing Officer for fresh adjudication in a tax dispute involving Late Kiran Kumar Jain for Assessment Year 2013-14. The Tribunal granted the legal heir a final opportunity to cooperate in the proceedings and directed completion of the assessment within three months.

The assessment had originally been completed under Sections 144 read with 254 of the Income Tax Act on 26.03.2023 determining total income at Rs. 38,04,500. The Assessing Officer made additions of Rs. 21,21,000 under Section 69 as unexplained investment, Rs. 4,30,000 under Section 69A as unexplained income, and Rs. 12,53,500 under Section 68 as unexplained cash credits.

The assessee challenged the assessment before the CIT(A), but the appeal was dismissed ex parte after repeated notices allegedly remained unanswered. The CIT(A) observed that the appellant failed to pursue the appeal or furnish evidence in support of the claims despite multiple opportunities provided through the faceless appellate process.

Before the Tribunal, the legal heir submitted that the assessee had expired in 2019 due to cancer and that the legal heirs were unable to fully track the faceless appellate proceedings or provide complete records relating to the deceased assessee’s brokerage and agricultural activities. It was also pointed out that this was the second round of litigation before the ITAT, as the earlier assessment order dated 23.03.2016 had already been set aside by the Tribunal in 2021 for fresh adjudication.

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Author Info

CA Sandeep Kanoi
Qualification: CA in Job / Business
Company: Taxguru Consultancy
Location: Mumbai, Maharashtra
Articles Published: 20,814

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