Inder Singh (Deceased) Vs ITO (ITAT Chandigarh)
ITAT Chandigarh Dismisses Appeal – Legal Heir Unable to Explain Cash Deposits; AO to Verify Inherited Assets Before Recovery; Legal Heir Unable to Explain Cash Deposits – ITAT Chandigarh Directs AO on Inherited Asset Liability; Assessment on Deceased Valid When Served on Heir, Rules ITAT Chandigarh; Recovery Restricted to Inheritance; ITAT Chandigarh Upholds Additions – Cash Deposits Unexplained; AO to Verify Inherited Assets Before Recovery; Deceased Assessee’s Appeal Dismissed – Tribunal Clarifies Heir’s Liability Limited to Assets Inherited
ITAT Chandigarh Dismisses Appeal – Legal Heir Unable to Explain Cash Deposits; AO to Verify Inherited Assets Before Recovery The case originated from AIR information regarding cash deposits of Rs. 66.36 lakh in SBI account. Since no return was filed, AO reopened assessment u/s 148. AO allowed credit of Rs. 15.69 lakh against sale of land but treated balance Rs. 50.67 lakh & Rs. 6,292/- as unexplained cash deposits, adding same to income. CIT(A) confirmed additions ex parte due to non-appearance.
Before Tribunal, legal heir submitted that deposits were made out of sale proceeds of land, but admitted that credit of such amount was already given by AO. She expressed inability to explain source of balance deposits, citing death of Assessee long back. Tribunal rejected argument that notice u/s 147 was invalid as it was issued on deceased person, noting that it was served on legal heir & it was duty of legal heir to inform AO about death. Tribunal observed that legal heirs could have filed return after death & discharged liability, but no such steps were taken.
Comments are closed.