Samir Kumar Paikaray Vs ITO (ITAT Kolkata)
ITAT Remands Cash Credit Case: Opportunity Must Be Given to Legal Heir for Evidence; Demonetisation Tax Dispute: Assessment Remanded Due to Assessee’s Death; Legal Heir Gets a Fresh Chance” – ITAT Cuttack Remands Demonetisation Cash Case for Re-Examination
The late assessee, proprietor of Paikaray Filling Station, had deposited ₹2.90 crore in cash during demonetisation, claiming the source as petrol-pump sales & recovery from debtors. AO disbelieved the explanation, treated ₹57.24 lakh as unexplained cash credits u/s 68, added ₹5.08 lakh for invalid SBN deposits post-24.11.2016, & made further disallowances for evaporation loss & sales promotion, assessing income at ₹86.83 lakh.
CIT(A)/NFAC dismissed the appeal for non-compliance, holding that no sufficient evidence was filed. Before ITAT, the legal heir sought one more opportunity, submitting readiness to furnish supporting documents & to substantiate the deceased assessee’s claims.
Tribunal observed that the matter involved factual verification of sale receipts & debtor confirmations, & that the assessee’s death & communication gaps justified a fresh hearing. It held that the CIT(A) should have adjudicated the matter on merits rather than mechanically dismissing the appeal.
Held: Order of CIT(A) set aside; matter remanded for de novo adjudication after granting reasonable opportunity to the legal heir.
