Jitendra Motilal Chawla Vs ITO (ITAT Ahmedabad)
The assessee appealed against the order of the Commissioner of Income Tax (DRP-2), Mumbai, for A.Y. 2019-20, challenging the reassessment proceedings and additions made under Sections 69A and 115BBE of the Income-tax Act. The principal dispute concerned additions relating to inward remittances received in the assessee’s NRE bank accounts, which the assessee claimed were foreign remittances not chargeable to tax in India.
The assessee, a non-resident individual, had not originally filed a return of income. Based on information received through the Insight Portal regarding substantial financial transactions, including foreign remittances, fixed deposits, and bank transactions, the Assessing Officer initiated proceedings under Section 148A. After the assessee filed a return declaring income of ₹17,977, the Assessing Officer sought explanations regarding the bank credits. Finding the documentary evidence insufficient, the Assessing Officer proposed additions of ₹10,25,19,212 under Section 69A read with Section 115BBE and ₹50,129 under Section 69.
Before the Dispute Resolution Panel (DRP), the assessee contended that the credits represented foreign inward remittances received in NRE accounts, including remittances from LTA LLC, a UAE-based trading company in which the assessee held a substantial ownership interest, and a loan of ₹93,47,649 from the assessee’s brother residing abroad. The assessee also argued that one transaction of ₹68,59,476 had been counted four times instead of three.
