PRADIP NAIK,GOA V. COMMISSIONER OF INCOME TAX (APPEALS) - 43, NEW DELHI

ITA 1497/DEL/2023

AI Insights

The case involves Pradip Naik, an NRI, who appealed against the order of the Commissioner of Income Tax (Appeals) which confirmed the addition of INR 3,25,00,000 as unexplained investments under section 69B of the Income Tax Act, 1961. The AO had initially re-opened the assessee's case based on information that he had made substantial deposits in a bank account without filing a return of income. The assessee argued that the funds were from income earned outside India and were transferred from NRI accounts. However, the AO in the remand report contested the source of the funds from Oman. The Tribunal decided to remand the issue back to the AO for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 822542 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 7 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-12-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: D
• Assessment Year: 2012-2013
• Appeal Filed On: 15-05-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: VIKRAM SINGH SHARMA
• Assessee Lawyers: MADHUR AGARWAL; THROUGH VC
• Keywords: Set aside; Unexplained investment; Source of fund
• Section: 147; 148; 144

Judgement Text

"ITA No.1497/Del/2023 Page | 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI “D” BENCH: NEW DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER & SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No.1497/Del/2023 [Assessment Year : 2012-13] Pradip Naik Bungalow No.25, Goa Housing Board, Behind Sai Service Station, Bardex, North Goa-403521 PAN-AFVPN7030H vs ITO International Taxation-2(2)(2) New Delhi APPELLANT RESPONDENT Appellant by Shri Madhur Agarwal, Adv. (through VC) & Ms. Sakshi Goyal, CA Respondent by Shri Vikram Singh Sharma, Sr.DR Date of Hearing 09.10.2025 Date of Pronouncement 24.12.2025 ORDER PER MANISH AGARWAL, AM : The present appeal is filed by the assessee against the order dated 15.06.2022 by Ld. Commissioner of Income Tax (A)-43, [“Ld. CIT(A)”] in Appeal No. 10054/2020-21 passed u/s 250 of the Income Tax Act, 1961 [“the Act”] arising out of the assessment order dated 17.12.2019 u/s 144(1)/147 of the Act pertaining to Assessment Year 2012-13. 2. Brief facts of the case are that the assessment was completed u/s 144 r.w.s 147 of the Act. The AO had information in his possession that assessee had made deposits of INR 3,75,00,000/- in the bank account but had not filed the return of income therefore, the case of the assessee was re-opened by issue of notice u/s 148 of Printed from counselvise.com ITA No.1497/Del/2023 Page | 2 the Act on 28.03.2019. Thereafter, since the assessee had not participated in the proceedings nor made any compliance, AO has held that investments made in mutual funds totaling to INR 3,25,00,000/-, source of which remained unexplained and accordingly, made the addition of such amount made u/s 69B of the Act. 3. Before Ld. CIT(A), assessee submitted the necessary details of the source of investments and submits that assessee is a NRI and all the deposits in the bank account are out of the income earned outside India and investments in mutual funds were made out of the funds transferred from NRI accounts. The assessee also filed the computation of income alongwith transactions statements and the bank statements in support of the claim before Ld. CIT(A) who sought Remand Report. The AO in the remand report stated that assessee has not been able to provide the source of the investments from Oman and thereafter appeal of the assessee was dismissed by Ld. CIT(A). 4. Aggrieved by the order of ld. CIT(A), the assessee has filed appeal before the Tribunal by taking following grounds of appeal:- 1. “On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in confirming the addition of Rs. 3,25,00,000/- as unexplained investments under section 69B of the Act. 2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in affirming the stand taken by the AO that the correct source of fund in NRE Bank account has not been explained by the assessee, although all the relevant documents, explaining the source of funds, were produced before the Ld. CIT(A). 3. The AO erred in issuing notice u/s 148 of the Act by merely relying on the information received from the AIR data.” Printed from counselvise.com ITA No.1497/Del/2023 Page | 3 5. All the grounds are with respect to the addition of INR 3,25,00,000/- made towards the investment in mutual funds thus, they are taken together for consideration. 6. Heard the contentions of both the parties and perused the material available on record. It is seen that the assessee is NRI and doing business in Oman since 1985 and having no income accrued or arise in India except interest income or income from mutual funds. The immediate source of investment made in mutual fund were claimed to have been made out of the funds available in the NRI account where the amounts were remitted from Oman. The assessee has filed all the relevant details such as bank statements etc. before Ld. CIT(A) however, the AO in Remand Report has alleged that the assessee has not explained the source of such funds from Oman. 7. Under these circumstances and in the interest of justice, we set aside the orders of both the lower authorities and remand the issue to the file of AO to pass the order denovo fresh after considering the submissions and details filed by the assessee regarding the source of investment made in mutual funds. The assessee is also directed to appear and file all the relevant evidences to explain the source of investment made in mutual funds. With these directions, all the grounds raised by the assessee are partly allowed for statistical purposes. Printed from counselvise.com ITA No.1497/Del/2023 Page | 4 8. In the result, the appeal of the assessee is partly allowed. Order pronounced in the open Court on 24.12.2025. Sd/- Sd/- (VIKAS AWASTHY) JUDICIAL MEMBER Date- 24.12.2025 *Amit Kumar, Sr.P.S* (MANISH AGARWAL) ACCOUNTANT MEMBER Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT 6. Guard File ASSISTANT REGISTRAR ITAT, NEW DELHI Printed from counselvise.com "