Tribunal Deletes ₹10.84 Cr Addition: Proper Sale Proceeds Ignored, Verified Loans Misread

Preity G. Zinta Vs ITO (ITAT Mumbai) ITAT Mumbai Deletes Entire ₹10.84 Cr Addition u/s 68; Loans & Sale-Proceeds Fully Explained, Circular-Transaction Theory Rejected Assessee, Ms. Preity G. Zinta, a non-resident actress, faced reassessment after Department noticed large credits/debits of ₹13.10 crore in a newly opened Corporation Bank account. AO treated these as unexplained cash credits u/s 68, alleging “circular transactions” with entities of Mr. Danish Merchant Group, ultimately adding ₹10.84 crore. ITAT noted that AO had issued notices u/s 133(6) to all three Danish Merchant...