ITAT Mumbai Clears Preity Zinta in Rs 10.84 Crore Tax Dispute:

ITAT Mumbai Clears Preity Zinta in Rs 10.84 Crore Tax Dispute The Income Tax Appellate Tribunal (ITAT), Mumbai, has recently ruled in favour of Preity G Zinta, a Bollywood actress, by deleting an income tax addition of Rs 10,84,27,700 made by the Assessing Officer.

Also Read

Property Valuation Should Be Based on Original Allotment Year: ITAT

The case started when the tax authorities noted some significant credit and debit transactions in one of her bank accounts. The tax authority noted that a deposit of Rs 13 crore was immediately withdrawn, leaving only Rs 10,300 as a balance. Since these credits and debits of huge amounts did not match the income declared by the assessee, the tax authority reopened her case under Section 147. The assessing officer issued a draft assessment proposing a revision to her income tax return by making a proposed assessment of Rs 11,30,48,040. Preity challenged this order before the Dispute Resolution Panel (DRP), which upheld the addition proposed by the assessing officer. Therefore, Preity approached the Income Tax Appellate Tribunal (ITAT), arguing that the reassessment was not properly warranted. Preity had borrowed a loan from a private entity using her flat as security. Her flat's sale financed the repayment of the loan. The ITAT noted that the assessee, Preity, has established the genuineness of the loan taken and repaid by proving the identity and the creditworthiness of the parties and the genuineness of the transactions by submitting all the required documents.

Also Read

ITAT Quashes Reassessment for Lack of Proper Section 148 Approval and Non-Faceless Notice; Allows Assessee’s Appeal

The Tribunal noted that Preity has not gained any profit from these transactions, and the transaction has just discharged the liability of the assessee from one entity to another. Based on these facts, the Income Tax Appellate Tribunal (ITAT) deleted the addition of Rs 10.84 Crore, giving major relief to Preity.