The Tribunal accepted his explanation, noting that the amount was invested out of the income earned by the assessee in Dubai, which was invested in property.
Nidhi | Mar 2, 2026 |
ITAT Ahmedabad Deletes Rs 56 Lakh Addition in NRI Property Investment Case
The Income Tax Appellate Tribunal (ITAT), Ahmedabad, ruled in favour of a Non-Resident Indian in a property investment case for the Assessment Year 2015-16.
The assessee, Mr Vashdev Darianomal Kalwani, has been an NRI living in the UAE since 1993. The lower tax authorities have added Rs 56,15,441 to his income, saying that it was an unexplained investment made for purchasing property in India.
However, the assessee argued that he had not earned any income in India other than the bank interest from his NRI accounts. He said that the money was transferred from his Dubai bank account and his son’s account to his Indian bank account. This money was invested in buying property.
The Tribunal accepted his explanation, noting that the amount was invested out of the income earned by the assessee in Dubai, which was invested in property. Therefore, this amount was not unexplained.
Accordingly, the ITAT deleted the addition of Rs 56,15,441.
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