Addition u/s 69 unsustainable as investment is out of NRI Repatriation funds

ACIT Vs Vijaykumar Vasantbhai Patel (ITAT Ahmedabad)

ITAT Ahmedabad held that addition u/s 69 of the Income Tax Act as unexplained investment unsustainable as the investment is out of the NRI Repatriation funds came outside India and which is not taxable in India.

Facts-

The assesee is an individual and Non-resident Indian. Regular assessment was completed u/s 143(3) of the Act on 12.12.2011. Later, AO came in possession of information that the assessee had made investment of Rs. 23,06,83,200/- in Fortis Mutual Fund (later renamed as BNP Paribas Mutual Fund).

AO treated the amount of Rs. 23.06 crores as unexplained investment u/s. 69 of the Act and added as the assessee’s income.

Please become a Premium member. If you are already a Premium member, login here to access the full content.