Suguna Radhakrishna Adappa (Legal Heir of Late Radhakrishna Monappa Adappa) Vs. Income Tax Officer, Ward 27(3)(1), Kalyan

Parties Involved

Facts Summary

The assessee, Radhakrishna Monappa Adappa, filed his original return of income for the assessment year 2017-18 declaring income of Rs.7,43,680/-. The Assessing Officer received information that the assessee had deposited cash aggregating to Rs.13,48,500/- in two bank accounts. Alleging that income to the extent of cash deposited in the bank account had escaped assessment, the Assessing Officer initiated proceedings under section 147 of the Income Tax Act, 1961 and completed the assessment by adding back the amount of Rs.13,48,500/- under section 69A of the Act. The assessee contested the addition by filing an appeal before the First Appellate Authority. The AO also initiated proceedings for imposition of penalty under section 271AAC of the Act and imposed a penalty of Rs.1,04,171/-. The assessee challenged the imposition of penalty by filing an appeal before the First Appellate Authority, but it was confirmed. The assessee passed away on 03.06.2021, and the show cause notice for penalty was issued on 29.03.2022, followed by the penalty order on 18.09.2022.…

Legal Issues

• 1. Validity of the order imposing penalty on a deceased assessee.

Judgment Outcome

Decided in favour of Assessee.

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