ITAT Bangalore Remands Reassessment Matter of NRI Assessee for Fresh Adjudication

The Income Tax Appellate Tribunal, Bangalore SMC Bench, has allowed the appeal of an NRI assessee, Shri Kandavara Abdul Basheer, for Assessment Year 2016–17 for statistical purposes, restoring the matter to the Assessing Officer for fresh consideration.

The Tribunal set aside the order of the Commissioner of Income Tax (Appeals), who had dismissed the assessee’s appeal for non-prosecution despite acknowledging the statement of facts on record. The Bench held that the appellate authority was duty-bound to adjudicate the issues on merits based on available material and could not summarily dismiss the appeal.

The case arose from a reassessment initiated after the assessee, a non-resident residing in Saudi Arabia, purchased an immovable property for ₹55 lakh. Additions were made towards unexplained investment of ₹10.81 lakh and a further ₹2.90 lakh under section 56(2)(vii)(b) for stamp duty valuation difference. Noting gaps in factual verification and lack of opportunity afforded to the assessee, the Tribunal remanded the entire matter to the Assessing Officer, granting the assessee 90 days to substantiate the sources of funds and explain the valuation difference.