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Facts
The assessee, an NRI, did not file original returns and subsequently failed to respond to notices under Section 148, leading to ex-parte assessments under Section 144 r.w.s. 147 for AY 2012-13 and 2013-14. Unexplained investments were added to his income, and his appeal before the CIT(A) was dismissed, despite his claim of being unaware of notices due to his NRI status and being in Dubai.
Held
The Tribunal acknowledged the assessee's genuine reason for non-compliance (being in Dubai) and noted that evidences were not submitted. It remanded both appeals back to the Assessing Officer for proper verification of evidences, re-adjudication, and to grant the assessee an opportunity of being heard in accordance with natural justice.
Key Issues
Whether an ex-parte assessment is valid when the NRI assessee claims unawareness of notices, and if the case should be remanded for fresh adjudication and opportunity to present evidence.
Sections Cited
148, 144, 147
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AHMEDABAD “SMC” BENCH, AHMEDABAD
Before: Ms. Suchitra Kamble
आदेश/ORDER
These two appeals are filed against the order dated 16- 10-2025 passed by ADDL/JCIT(A)-2, Jaipur for assessment year 2012-13 & 2013-14.
The grounds of appeals are as under:-
A.Y. 2012-13 “Payments of Rs. 6,31,000 made to M/s Angel Brokers Ltd and Payments of Rs. 4,69,176 made to M/s Vadodara Exchange Ltd were considered as unexplained investments and accordingly added to income. As the assessee is NRI and was completely unaware of show cause notices, he could not respond to notices. Ex-parte assessment was framed and hence this appeal. Submissions alongwith Form 35 was not considered by CIT(A), & 2622/Ahd/2025 Vimalkumar Bansilal Thakkar, A.Y. 2012-13 & 2013-14 which should have been considered as material available on record.”
ITA No. 2622/Ahd/2025 A.Y. 2013-14
“Payments of Rs. 2,65,000 made to M/s Angel Brokers Ltd and Payments of Rs. 2,09,109 made to M/s Vadodara Exchange Ltd were considered as unexplained investments and accordingly added to income. As the assessee is NRI and was completely unaware of show cause notices, he could not respond to notices. Ex-parte assessment was framed and hence this appeal. Submissions alongwith Form 35 was not considered by CIT(A), which should have been considered as material available on record.”
Both the appeals are identical, therefore taking the facts of . The assessee did not file original return of income. The case was reopened after recordings the reasons for reopening and obtaining necessary prior approval of the competent authority. Notice u/s. 148 of the Income Tax Act was issued on 28-03-2019. The assessee did not file return of income in compliance to the notice u/s. 148 of the Act. Since the assessee has not replied statutory notices, the assessment proceedings was completed on 07-12-2019 u/s. 144 r.w.s.147 of the Act determining total income at Rs. 11,00,180/- assessment year 2012-13. The Assessing Officer made addition of Rs. 11,00,176/- as unexplained investment.
Being aggrieved by the assessment order, the assessee 4. filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee.
The ld. A.R. submitted that assessment order as well as the order of the CIT(A) are ex-parte, therefore, the matter & 2622/Ahd/2025 Vimalkumar Bansilal Thakkar, A.Y. 2012-13 & 2013-14 may be remanded back to the file of the Assessing Officer of proper adjudication of the issues and the assessee may be allowed to file evidences before the revenue authorities.
The ld. D.R. relied upon the assessment order and the order of the CIT(A).
Heard both the parties and perused all the relevant materials on record. It is found that before the CIT(A), the assessee could not submit evidences as the assessee was in Dubai at particular period. Thus, the assessee has genuine reason for non-compliance of the notices issued by the CIT(A). From the perusal of the records, it can be seen that the assessee has not filed any evidences, therefore the assessee is directed to file the evidences before the Assessing Officer. The matter is remanded back to the file of the Assessing Officer for proper verification of the evidences and adjudicate the matter as per Income Tax Act. Needless to say, the assessee be given opportunity of hearing by following principles of natural justice. The assessee is also directed to fully co-operate the proceedings before the Assessing Officer and if the delay is caused due to the assessee’s non-cooperation, the Assessing Officer will proceed as per Income Tax Statute. Thus, 2012-13 is partly allowed for statistical purpose.
& 2622/Ahd/2025 Vimalkumar Bansilal Thakkar, A.Y. 2012-13 & 2013-14 the fact remains similar to that of assessment year 2012-13, thus, for assessment year 2013-14 as well, the matter is remanded back to file of the Assessing Officer with the similar directions as given hereinabove.
In the result, both the appeals are partly allowed for statistical purpose.