Case Law Details
Late Sh. Pitam Singh, Through L/H Sh. Jitendra Singh Vs ITO (ITAT Delhi)
Introduction: The recent order by the Income Tax Appellate Tribunal (ITAT) Delhi has brought attention to the case of Late Sh. Pitam Singh, Through L/H Sh. Jitendra Singh Vs ITO. The appeal, arising from the assessment year 2009-10, challenges the validity of the notice issued in the individual capacity instead of HUF (Hindu Undivided Family).
Detailed Analysis: The appellant raised multiple grounds, primarily challenging the notice’s validity under section 148 and subsequent proceedings u/s 159. The key contention is that the notice, pertaining to cash deposits of Rs. 61,87,600, was issued in the individual name instead of the HUF. The legal heir argued that the assessment should have been in the name of HUF, as the deposited amount originated from the sale consideration of HUF property.
The ITAT observed that the Assessing Officer (AO) failed to verify the correct facts and neglected to issue notices to all legal heirs. The appellant contended that no meaningful opportunity was granted during the proceedings. Consequently, the ITAT set aside the orders of the authorities below, restoring the matter to the AO for fresh examination.
Conclusion: The ITAT’s decision emphasizes the importance of accurate identification and representation in tax assessments, especially when involving legal heirs and HUF properties. The direction for reassessment allows the AO to verify and decide on the objections raised by the appellant, ensuring a fair and effective representation. This development holds implications for cases where procedural lapses may impact the validity of notices and subsequent assessments.
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