NAVIN SHIVJI PATEL,TIRUNELVELI vs. DCIT, CIRCLE-1,, TIRUNELVELI

This appeal filed by the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, dated 01.10.2025 passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Year is 2016-17.

At the very outset, we notice that the First Appellate Authority’s (FAA) order is ex-parte, since there was no compliance from the assessee to the five notices issued from the office of the First Appellate Authority. Further, we also note that the assessment has been completed on best judgment basis u/s.144 of the Act.

The Ld.AR submitted that the AO has completed the assessment on best judgment basis u/s.144 of the Act by making addition of Rs.70,00,000/- as unexplained investment, since the assessee has failed to respond to the notices issued from the office of the AO. The Ld.AR submitted that during the course of assessment proceedings, the assessee was under the judicial custody (remand) and hence could not respond to the notices issued by the AO. The Ld.AR further submitted that the FAA had confirmed the addition made by the AO since the assessee has not furnished any supporting document in support of source of purchase of immovable property. The Ld.AR submitted that the entire purchase consideration for the purchase of immovable property was paid through banking channels and was sourced from drawings made by the assessee from the current account of partnership firm M/s. Poonam Trading Company. Therefore, it 3 -: was prayed in the interest of justice and equity, the issue may be restored to the files of the AO as a last opportunity for proper representation of the case by submitting the necessary documents/evidences to explain the source of investment.