Rajnish Kasturchand Ostwal vs. Income Tax Officer, Int Tax, Ward 3(2)(1), Mumbai

Parties Involved

Facts Summary

The assessee, Rajnish Kasturchand Ostwal, a Non-Resident Indian who had been living and working in Dubai since 2001, returned to India in 2021. During the relevant previous year for A.Y. 2016-17, he made a payment of ₹2 crores towards the purchase of a residential property in India. Since no return of income had been filed in India and information was received regarding the investment in property, a notice under section 148 was issued. The assessee submitted that he was employed in Dubai, earning salary income, and the investment was made out of accumulated foreign salary savings remitted into his NRE account in India. He produced a complete trail of funds including bank statements, authorised dealer certificates, and salary details to substantiate his claim.…

Legal Issues

• 1. Validity of the reopening under section 147
• 2. Addition of ₹2,00,00,000 made under section 69 for unexplained investment

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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