2023 (9) TMI 491 - HC - Income Tax

Block assessment - deceased assessee had an undisclosed income - petitioner as a Legal Heir/Representative filled appeal before ITAT for the block assessment period as allowed on the ground that there was violation principles of natural justice - ITAT remitted the case back to the AO to pass fresh order, mean while, the property on the name of the deceased assessee were attached by an order - HELD THAT - Income Tax Officer (HQ) (preventive), the first respondent has addressed a letter dated 12.06.2023 to the Deputy Commissioner of Income Tax, Circle-1, Vellore the fourth respondent for taking necessary action as whether any orders have been passed pursuant to the intimation notice dated 01.12.2008 as same was not ascertainable. Respondents are directed to consider the petitioner's representation/reply dated 16.05.2023 and 29.05.2023 and dispose the same on merits and in accordance with law within a period of four weeks from the date of receipt of a copy of this order. The de novo proceeding which ordered by the Income Tax Appellate Tribunal (ITAT) is also directed to completed.Writ Petition stands disposed of with the above observations.

Summary

Issues involved:
The issues involved in the judgment are the attachment of property of a deceased Income Tax Assessee, adverse Assessment Order, appeal before the Commissioner of Income Tax (CIT) (Appeals), violation of principles of natural justice by the Income Tax Appellate Tribunal (ITAT), and the subsequent representations seeking release of attachment order.

Adverse Assessment Order and Appeals:
The deceased assessee received an adverse Assessment Order for the block assessment period from 1988 to 1998, indicating undisclosed income. The petitioner, as the Legal Heir/Representative, appealed before the Commissioner of Income Tax (CIT) (Appeals), who upheld the Assessing Officer's order. Subsequently, an appeal was made to the Income Tax Appellate Tribunal (ITAT), which allowed the appeal on the grounds of a violation of natural justice and remitted the case back to the Assessing Officer for a fresh order.

Attachment of Property and Representations:
During the pendency of assessment proceedings, the property of the deceased assessee was attached by the second respondent. The petitioner made representations dated 16.05.2023 and 29.05.2023 seeking the release of the attachment order. The petitioner argued that the attachment order preceded the ITAT order and should be quashed as it no longer holds validity. Despite the representations, the order of attachment was reflected in property registers, prompting the petitioner to seek its quashing through the petition.

Court's Decision:
After considering the arguments from all parties, the court directed the respondents to review the petitioner's representations and dispose of them within four weeks. Additionally, the Income Tax Appellate Tribunal's de novo proceeding was ordered to be completed. The court disposed of the Writ Petition with these directives, without imposing any costs, and closed the connected Writ Miscellaneous Petition.