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Facts
For AY 2012-13, the assessee's return was reopened based on information about undisclosed investments of Rs. 12,06,919/- in Sahara Group schemes. An ex-parte reassessment order was passed making an addition under section 69 due to the assessee's non-appearance and failure to file a return. The CIT(A) confirmed the addition, citing the assessee's failure to submit supporting documents despite multiple opportunities.
Held
The Tribunal observed that both the reassessment and appellate orders were ex-parte and did not consider evidence like bank statements and a Karnataka Bank Certificate regarding non-issuance of specific cheques. Emphasizing the principle of Natural Justice, the Tribunal remanded the matter back to the Jurisdictional Assessing Officer to grant the assessee a fresh opportunity for hearing and decide the case on merits.
Key Issues
1. Whether the ex-parte assessment and appellate orders were valid without considering documents provided by the assessee. 2. Whether the addition under Section 69 for unexplained investments was justified when the assessee was not given proper opportunity to present her case.
Sections Cited
143(3), 147, 143(1), 148, 69
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AHMEDABAD “SMC” BENCH
Before: DR. BRR KUMAR & SHRI T.R. SENTHIL KUMAR
Date of hearing : 11-02-2026 Date of pronouncement : 17-02-2026 आदेश/ORDER PER TR SENTHIL KUMAR, JUDICIAL MEMBER:
This appeal is filed by the assessee as against the appellate order dated 31-03-2025 passed by Addl/JCIT(A)-1 Bangalore against the re-assessment order passed u/s. 143(3) r.w.s. .147 of the Income Tax Act, 1961 relating to assessment year 2012-13.
Registry has noted that there is delay of 37 days in filing above appeal. The assessee explained that due to the fact that the former Consultant did not filed the appeal, it is thereafter the assessee engaged new Consultant, thereby delay of 37 days in Kavita Alva, A.Y. 2012-13 filing the appeal. Considering the reasons stated, the delay of 37 days in filing the appeal is condoned.
Brief facts of the case, the assessee is an individual. For the Assessment Year 2012-13, she filed her Return of Income on 28-03-2013 declaring total income of Rs. 9,23,770/-. The return was processed u/s. 143(1) of the Act. Thereafter, the return was reopened on the information gathered from M/s. Sahara India Finance Corporation Ltd., that the assessee made investment of Rs. 12,06,919/- during the Financial Year 2011-12 in various schemes of Sahara Group, whereas the assessee declared nil investment in the Return of Income. Therefore a notice u/s. 148 of the Act dated 27-03-2019 was served on the assessee. The assessee failed to appear before the Assessing Officer nor filed any Return of Income which has resulted in passing ex-parte reassessment order and making addition u/s. 69 of the Act of Rs. 12,06,919/-.
Aggrieved against the re-assessment order, the assessee filed an appeal. Ld. CIT(A) dismissed the appeal on the ground that in spite of several opportunities given, the assessee failed to submit supporting documents namely bank statements, source of such investments, therefore confirmed the additions made by the Assessing Officer.
Aggrieved against the appellate order, assessee is in appeal before us raising the following Grounds of Appeal: “All the investments are in assessee name made by herself in a daily recurring manner out of her household withdrawal from her business new alka at All alkapuri Vadodara. Investment is done. All investment is done. No Interest or principal amount is received back. Balance sheet and ledger accounts were produced which reflects lot of withdrawals. The money is accounted and accumulation of several years. All Investment was done from 2. Kavita Alva, A.Y. 2012-13 household savings only. the money is debited in personal capital account instead of Investment account. The assessee reserves its right to add delete amend alter and modify any other grounds of appeal
.”
6. At the outset, when this matter was listed on 10-02-2026 the ld. counsel for the assessee submitted that there were materials available with the Assessing Officer to re-open the assessment but not furnished to the assessee, therefore requested for copies of the documents. In response, Ld. Sr. D.R. was directed to provide the documents from the concerned Assessing Officer. When the above appeal was listed for hearing on 11-02-2026. Ld. Sr. D.R. produced 12 pages namely Annexure-1 Karnataka Bank Certificate confirming non- issuance of alleged Cheque Numbers belonging to assessess’s Saving Bank account, Annexure-2 Bank statement of relevant period and Annexure-3 copy of AO’s record showing alleged Cheque Numbers and persons made investment in Sahara India Group.
6.1. Perusal of Annexure-1 namely Certificate from Karnataka Bank dated 10-02-2026 clearly states that non-issuance of specific (33) Cheque Numbers belonging to the assessee during the period from 07-06-2011 to 23-03-2012. Further both reassessment and appellate order are exparte orders and non- consideration of the bank statements and Karnataka Bank Certificate. Therefore in the interest of Principle of Natural Justice, we deem it fit to set-aside the matter back to the file of Jurisdictional Assessing Officer to give one more opportunity of hearing to the assessee and decide the case on merits while passing appropriate reassessment order. Needless to say the assessee should make use of this final opportunity and cooperate for passing reassessment order.
In the result, the appeal filed by the Assessee is treated allowed for statistical purpose Order pronounced in the open court on 17-02-2026