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Case Law Details

Case Name : Ishwarbhai Madhavlal Patel-HUF Vs ITO (ITAT Ahmedabad)
Appeal Number : ITA No. 1472/Ahd/2018
Date of Judgement/Order : 29/03/2023
Related Assessment Year : 2014-2015

Ishwarbhai Madhavlal Patel-HUF Vs ITO (ITAT Ahmedabad)

In the present case, the Karta of HUF having expired in the year 2021 itself when this information was first provided and since then revised Form No. 36 in the name of the legal-heirs or representative of the deceased-assessee is not be filed as provided in Rule 26 of the Income-tax (Appellate Tribunal) Rules, nor anybody coming present to give plausible reason for the ineffectiveness on the part of the assessee, but on the contrary, repeatedly filing the Adjournment application in a mechanical way, it is clear that the assessee is no longer interested in pursuing the appeal and in the absence of any corrective action taken, the appeal stands abated. In view of the above, the appeal of the assessee is dismissed as abated and non-maintainable.

FULL TEXT OF THE ORDER OF ITAT AHMEDABAD

The present appeal has been filed by the assessee against order of the learned Commissioner of Income-tax (Appeals), Ahmedabad-5 [hereinafter referred to as “CIT(A)” for short] dated 13.03.2018 passed under Section 250(6) of the Income Tax Act, 1961 [hereinafter referred to as “the Act” for short] for the Assessment Year (AY) 2014-15.

2. In the present case, none has appeared to argue the case on behalf of the assessee right from the inception of appeal on 4th June, 2018 to till date with either adjournments were being sought on behalf of the assessee or nobody came present for the assessee on every occasion when the appeal was listed thereafter. Even today, none has come present for the assessee nor any application seeking adjournment has been filed before me. Therefore, I decided to proceed with the matter and dispose of the appeal ex-parte qua the assessee after hearing the ld. DR.

3. On going through the file before me, I came across adjournment applications filed on the previous occasions by the learned Counsel for the assessee stating that the assessee, being an HUF, its Karta had passed away and the Counsel had no instruction as to how to proceed with the appeal thereafter. The first application stating so was filed on 1st February, 2021, which reads as under:-

“The hearing of the above referred appeal is fixed before your Honours today i.e. 01.02.202 1. The Karta of the HUF passed away few days back and accordingly no instructions could be given to the Counsel. Under these circumstances, the appellant requests your Honours to adjourn the hearing fixed today for at least 4 weeks oblige.

For this act of kindness, the appellant shall be obliged as ever.

Place : Ahmedabad
Date: 01.02 .2021

For, Ishwarbhai Madhavlal Patel-HUF
Sd!-
(Authori2ed Person)”

Since then, identical statements were made before the Tribunal when the matter came up for hearing on 02.05.2022, 26.09.2022, 27.10.2022, 29.11.2022, 02.01.2023, 16.01.2023, 14.02.2023 and 01.03.2023. What is evident from the above, therefore, is that the assessee is not interested in pursuing its appeal by taking corrective measures as required under law on the passing away of the Karta of the HUF. As per Rule 26 of the Income-tax (Appellate Tribunal) Rules, 1963, where an appellant-assessee dies or is adjudicated insolvent or in the case of a company is being wound-up, the appeal shall not abate and if the assessee being the appellant wants to continue with the appeal, he is required to file revised Form No. 36 in the name of the legal-heirs or representative of the deceased-assessee. Rule 26 of the Income-tax (Appellate Tribunal) Rules provides as under:-

“26. Where an assessee whether he be an appellant or the respondent to an appeal dies or is adjudicated insolvent or in the case of a company being wound up, the appeal shall not abate and may, if the assessee was the appellant, be continued by, and if he was the respondent be continued against, the executor, administrator or other legal representative of the assessee or by or against the assignee, receiver or liquidator, as the case may be:

Provided that:

(i) The assessee files a revised Form No. 36 duly filled up giving revised name of the party duly verified in the same manner as required by rule 47 of Income Tax Rules, 1962;

(ii) The revised Form No. 36 shall specify the appeal number as originally assigned or, in the event of non-availability of such number on the date of filing the appeal shall be mentioned in the covering letter to enable the Registrar to place fresh Form No. 36 in the original file.]”

4. In the present case, the Karta of HUF having expired in the year 2021 itself when this information was first provided and since then no corrective action being taken by the assessee as provided in Rule 26 of the Income-tax (Appellate Tribunal) Rules, nor anybody coming present to give plausible reason for the ineffectiveness on the part of the assessee, but on the contrary, repeatedly filing the same application in a mechanical way, it is clear that the assessee is no longer interested in pursuing the appeal and in the absence of any corrective action taken, the appeal stands abated. In view of the above, the appeal of the assessee is dismissed as abated and non-maintainable.

5. In the result, the appeal of the assessee is dismissed as abated and non-maintainable.

Order pronounced in the open Court on 29th March, 2023 at Ahmedabad.

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