Case Law Details
Late Shri Motilal Hastimaji Bothra Vs ITO (ITAT Mumbai)
Introduction: In a recent case before the Income Tax Appellate Tribunal (ITAT) Mumbai, a crucial issue came to light when an assessment order was framed in the name of a deceased assessee, Late Shri Motilal Hastimaji Bothra. The legal heir of the assessee challenged the order, raising concerns about the validity of the assessment. This article delves into the details of the case, the analysis, and the implications for legal heirs.
Detailed Analysis: The case revolved around an assessment for the assessment year 2010-11. After the initial assessment, the ITAT Mumbai initiated proceedings under section 147 of the Income Tax Act, 1961, based on information from the Directorate General of Income Tax (Investigation) regarding alleged accommodation entries in sales and purchase bills. The notice under section 148 of the Act was issued to the deceased assessee. Further notices were issued, but the assessee did not respond.
The Assessing Officer (AO) proceeded to complete a best judgment assessment based on the available material. The AO treated the entire purchases from accommodation entry providers as non-genuine and made an addition of Rs. 1,12,06,190 to the total income of the assessee.
The critical issue arose when it was revealed that the assessee had passed away on 06/08/2015, long before the assessment order was passed on 24/02/2016. Although the legal heir of the assessee had not informed the AO about the demise, the ITAT decision in a similar case pointed out that there was no statutory obligation on the part of legal representatives to inform the tax department immediately.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
