Faisal Badruddin Shitware Vs ITO (ITAT Mumbai)
Non-Resident Gets Relief – Mumbai ITAT Deletes ₹7 Lakh Addition – Jewellery Sale & NRE Withdrawals Accepted-– Tribunal Quashes 69 Addition on Property Investment
Assessee, a non-resident employed in Dubai, did not file return of income for AY 2016-17. AO noticed investment of ₹55,03,000 in property & bank interest of ₹13,138, leading to notice u/s 148 on 16.03.2023. As no reply was filed to 148A(b) notice, reassessment was initiated. In draft order, AO proposed addition of ₹31,33,620 u/s 69 as unexplained investment.
On objections, DRP reduced addition to ₹7,00,000, comprising cash deposits of ₹5,00,000 & cheque deposits of ₹2,00,000. AO passed final order u/s 147 r.w.s. 144C on 17.12.2024 sustaining this addition.
Before Tribunal, Assessee sought condonation of 102-day delay in filing appeal due to severe disability from motor neuron disease, supported by doctor’s certificate. Tribunal condoned the delay. On merits, Assessee explained that cash deposits were sourced from sale of old jewellery & withdrawals from his NRE account, which reflected substantial remittances of Dubai salary. Cheque deposits of ₹2,00,000 were from explained banking transactions. Total investment in property was ₹60.80 lakh, funded by India Bulls loan of ₹27.74 lakh, Dubai remittances, gift from mother & jewellery sale.
