Quick Summary
A Non-Resident Indian (NRI) taxpayer successfully challenged the Income Tax Department after being initially slapped with a draft assessment order adding Rs 2.28 crore as "unexplained income," raising his total assessed income to Rs 2.32 crore. The case drew attention because the taxpayer had filed his income tax return belatedly, declaring a modest income of Rs 3.83 lakh. Despite this, the department invoked Section 69A of the Income Tax Act, 1961, alleging that the taxpayer failed to explain
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FAQ :
The Income Tax Department initially added Rs 2.28 crore as 'unexplained income' to the NRI taxpayer's declared income.
The ITAT reduced the alleged unexplained income by 97%.
The ITAT confirmed an unexplained income of Rs 63,133.
The department invoked Section 69A of the Income Tax Act, alleging the taxpayer failed to explain multiple high-value transactions, despite a belatedly filed return declaring a modest income.
The ITAT critically reviewed bank statements, fixed deposit records, investments, and insurance proofs submitted by the taxpayer.
The tribunal criticised the Dispute Resolution Panel (DRP) and the assessing officer for relying on assumptions rather than documented proof.
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