In a major development impacting NRI property taxation and income tax dispute resolution, the Income Tax Appellate Tribunal (ITAT), Ahmedabad Bench, has granted substantial relief in the case of Brijeshkumar Natvarlal Patel vs. ITO (ITA No. 1333/Ahd/2025). The Tribunal set aside the ex-parte assessment order where an addition of ₹66.95 lakh was made as unexplained investment under Section 69A of the Income Tax Act and directed the Assessing Officer to conduct fresh proceedings after granting proper opportunity of hearing.

This ruling holds tremendous significance for NRIs receiving tax notices related to property purchases, reassessment notices under Section 148, faceless assessment disputes, and issues concerning documentation delays due to overseas residence.

Case Background

The case relates to Assessment Year 2015-16, where the income tax department issued a notice under Section 148 for reopening the assessment based on information that the assessee had purchased immovable property worth ₹66.95 lakh in India. As the assessee did not file a return of income, the Assessing Officer presumed that the investment remained unexplained and made an ex-parte assessment under Section 69A, adding the full value of the property to taxable income.

Why the NRI Could Not Respond

The assessee submitted that:

• He has been an NRI and a U.S. citizen residing in Florida since 2001.
• He was unaware of the assessment notices issued in India.
• Key documents and bank statements related to the property purchase were in India, accessible only if he traveled back personally.
• Due to business obligations abroad, he could not travel and file an appeal in time, resulting in a delay of 312 days before approaching CIT(A), who dismissed the appeal without condoning the delay.

ITAT Ahmedabad’s Judgment

After reviewing the facts, the Tribunal found that the assessee had shown sufficient reasonable cause for his inability to appear and submit evidence earlier. The ITAT noted that:

Key Observations by the Tribunal

• The assessee had provided genuine and credible reasons as an NRI living abroad, which explained the delay.
• Only three opportunities were provided by CIT(A), which may not fulfil the principles of natural justice.
• Documents shared before the Tribunal indicated that the property payments were made in preceding financial years, weakening the addition under Section 69A for the relevant year.
• The matter deserved reconsideration, rather than mechanical dismissal.

ITAT Final Decision

• Order of CIT(A) set aside
• Assessment restored back to the AO
• Fresh opportunity of hearing to be granted
• Appeal allowed for statistical purposes

This judgment protects NRIs from automatic high-value additions due to procedural lapses, travel restrictions, or delayed communication.

Key Learnings for NRIs

What this judgement reinforces

• NRIs frequently face ex-parte tax assessments due to practical challenges in communication and documentation.
• Right to fair hearing and proper opportunity cannot be denied.
• Section 69A additions must be based on facts and correct financial year considerations.
• Delays caused by residence outside India or travel limitations must be viewed sympathetically.
• Reassessment under Section 148 cannot be sustained without due process.

How Dinesh Aarjav & Associates Helps NRIs with Similar Matters

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Our Expertise Includes:

• Handling notices under Section 148 / 147 (reassessment)
• Appeals against ex-parte assessments & condonation of delay
• Defense in Section 69A / 68 unexplained investment or cash deposit matters
• ITAT representation and legal drafting
• Taxation of NRI property purchase & sale
• Compliance with FEMA, TDS, DTAA & cross-border regulations
• Support in faceless assessment & faceless appeals

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• 25+ years of specialization in NRI Tax Planning & Advisory
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Conclusion

This ITAT Ahmedabad judgment is a major relief for NRIs dealing with property taxation and income tax notices, reinforcing that legitimate challenges faced by NRIs living abroad must be considered. The ruling underscores the importance of fair hearing and justice, especially when high-value additions are made without complete facts.