NRI Taxation has been a matter of interesting issues and controversy. Here was one such issue in the case of Atul H. Patel v. ITO (2022) 138 taxmann.com 454 (ITAT Ahmedabad)].

Let us have a short overview of the case.

Assessee (NRI), during the relevant assessment year 2012-13 has deposited a certain amount of cash in the bank account source of which was unexplained.

Assessee contended that said amount was accepted as a gift from his father and brother, for the purpose of purchasing residential property.

Assessing Officer observed that there was a mismatch of dates mentioned in deed of gift against date on which deposit was made and thus, treated said deposits as unexplained cash credit under section 68.

In support of his contention, the assessee filed a cash book, profit and loss account, gift deed, sales bills of agriculture proceeds and revised gift deed with correct dates.

Since assessee had discharged onus to prove genuineness of cash deposited in his bank account by submitting various documents and there was nothing contrary brought on record suggesting that said amount was not out of gift, impugned additions made under section 68 were liable to be deleted.

With this, the issue was decided in favour of the assessor.