Case Law Details
Vijaykumar Kanaiyalal Matta Vs ITO (ITAT Mumbai)
Addition under Section 69 on non-resident unsustainable as income is invested in India but not arisen in India
ITAT Mumbai rules that the addition made under Section 69 of the Income Tax Act is unsustainable for a non-resident taxpayer. The tribunal emphasizes that the income in question was invested in India but did not arise in India. Referring to relevant tax treaties and previous case decisions, the tribunal concludes that the income cannot be taxed in India as it falls outside the scope of residence and source jurisdiction.
Facts- The assessee is a non-resident. The assessee purchased a property in a project known as “Silver Arch” developed by Argent Constructions for a consideration of Rs.1 crore. Post conduct of search at the premises of Argent Constructions and statement of Vipul Mangal, partner of Argent Constructions, AO made addition of Rs. 25 Lakhs u/s 69 in AY 2013-2014 and Rs. 22 Lakhs in AY 2014-2015.
CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
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