Late Anand Jeewan Verma, Legal Heir, Amit Verma vs. Income Tax Officer, Ward-1(1), Allahabad

Parties Involved

Facts Summary

The facts of the case are that based on AIR information that in the Financial Year 2008-09, a sum of Rs.10 Lacs or more had been deposited in cash by Shri. Anand Jeewan Verma, the ld. Assessing Officer issued a notice in the name of Shri. Anand Jeewan Verma on 30.06.2016. When this notice was not complied with, a subsequent notice was issued under section 142(1) of the Act. This too was not complied with. Thereafter, a penalty notice under section 271(1)(b) of the Income Tax Act, 1961 was issued to the assessee on 20.05.2016 and sought to be served upon the assessee through the Inspector of the office. When the Inspector of the office went to the residence of Shri. Anand Jeewan Verma, he was informed by his son that Shri. Anand Jeewan Verma had expired. However, the ld. Assessing Officer records that he did not make compliance to the notice under section 271(1)(b) therefore, a penalty order under section 271(1)(b) was passed on 22.06.2016. Subsequently, a notice under section 142(1) dated 3.06.2016, was issued to the legal heir of Shri. Anand Jeewan Verma i.e. Shri. Amit Verma, but there was no compliance to the same. After giving couple of more opportunities, the ld. Assessing Officer added back a sum of Rs.28,21,330/- credited to the bank account of Shri. Anand Jeewan Verma as income from unexplained sources and initiated penalty proceedings under section 271(1)(c).…

Legal Issues

• 1. Whether the notice issued to the deceased person is valid?
• 2. Whether the credits in the bank account can be taxed in the hands of the legal heir?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

Similar Judgements

• Rajesh B. Jain as Legal Heir of Bhanwarlal Jain vs. ITO, Ward-19(1)(1)

• ITA No. 1366/Del/2024

  Delhi bench

• Basant Kumar Raut Vs. Assistant Commissioner of Income Tax, Circle 61(1)

  Delhi Bench ‘A’ benchAY 2016-17Allowed

• Harshadkumar Bhogilal Raval vs. Income Tax Officer

  Ahmedabad bench

• Saroj Gupta (legal representative of Shri Pawan Kumar Gupta) Vs DCIT, Central Circle-25, New Delhi

  Delhi Bench benchAY 2014-15, 2015-16, 2016-17, 2017-18, 2018-19, 2019-20, 2020-21Allowed

• Marappan Balasubramanian (Deceased), Rep by Legal Heir Kavitha Balasubramanian (Wife) v. The ITO, Ward 1(2), Tiruppur, Tamil Nadu