Vishnu Kumar Katuri Vs ITO (ITAT Hyderabad)
The ITAT Hyderabad allowed the assessee’s appeal against the order dated 25.10.2023 of the CIT(A)-NFAC concerning A.Y. 2011-12. The appeal challenged confirmation of an addition of Rs.95,10,000/- made by the Assessing Officer.
Information was received that the assessee had invested Rs.95,10,000/- in a savings bank account with Karur Vysya Bank Ltd., Adilabad. As the assessee was not assessed to Income Tax, proceedings were reopened under Section 148. Notice dated 26.03.2018 was served on 27.03.2018, followed by notices under Sections 143(2) and 142(1). As no return was filed and the assessee did not attend the hearings, the Assessing Officer completed the assessment under Section 144 read with Section 147, determining total income at Rs.95,10,000/-. The CIT(A)-NFAC upheld the assessment.
Before the Tribunal, the assessee’s counsel submitted that Shri Vishnu Kumar Katturi had died on 07.11.2017, before the notice under Section 148 was issued on 26.03.2018. It was also submitted that the father of the deceased had appeared before the Assessing Officer and explained that the deposits related to commission received by his deceased son from independent business activities, while stating that he was not the legal heir. The assessee’s counsel contended that reopening and the consequent assessment based on the father’s submissions were non-est in law.
