NIPUL VINAYKANT TOLIA,GHATKOPAR, MUMBAI vs. INCOME TAX OFFICER 27(2)(1), MUMBAI, VASHI, MUMBAI

Inspite of issue of notice, none appeared on behalf of the assessee nor any adjournment was moved. This appeal is disposed off after hearing the Ld. DR.

On perusal of the assessment order, it is noticed that the Assessing Officer completed the assessment ex-parte u/s 144 r.w.s. 147 r.w.s. 144B of the Act by making an addition of ₹80,00,000/- u/s 69 of the Act on account of unexplained investment in the purchase of immovable property, besides additions of ₹8,432/- and ₹7,334/-. We observed that the assessee is a non-resident and had furnished replies before the Assessing Officer explaining that the investment in the immovable property was made out of funds transferred from his NRE account representing income accrued and arisen outside India and, therefore, was not chargeable to tax in India. The Ld. CIT(A) dismissed the appeal without properly appreciating the explanation and supporting documents furnished by the assessee.

We further observe that the assessee had furnished certain explanations before the Assessing Officer stating that the investment in the property was made out of funds transferred from the NRE account representing income earned outside India. The Ld. CIT(A), however, upheld the additions made by the Assessing Officer. Considering the totality of the facts and circumstances of the case, and in the interest of substantial justice, we deem it appropriate to restore the matter to the file of the Assessing Officer for fresh adjudication. The Assessing Officer shall examine the documentary evidence and explanations to be furnished by the assessee and decide the issues afresh in accordance with law after providing adequate opportunity of hearing to the assessee. The assessee is also directed to extend full cooperation in the assessment proceedings and furnish all the relevant documents as may be called for by the Assessing Officer.

In the result, the appeal of the assessee is allowed for statistical purposes.