Ex Parte Assessment Order u/s 144 Passed by upholding Addition of unexplained Investment: ITAT

The ITAT has restored a matter to the Assessing Officer (AO) for a fresh assessment after upholding the addition of unexplained investments in an ex-parte assessment order under Section 144. The assessee, an elderly individual, had failed to respond to notices due to personal hardships. The ITAT considered the age and circumstances of the assessee, directing the AO to provide another opportunity to present the case and examine the unexplained investments. The decision underscores the ITAT’s emphasis on fairness in tax assessments, especially when genuine hardships are involved, and ensures that tax assessments are not finalised without proper consideration of the facts.