In a recent judgement, the Income Tax Appellate Tribunal (ITAT) Ahmedabad gave relief to a non-resident man from an income tax notice for unexplained cash credit, as he could fully explain the source of the funds including the cash he used to pay the builder to buy a property in Kandawali West, Mumbai. This man (Mr Purohit) is a non-resident Indian and also a US citizen and since April 2002 has been residing in the United States of America (USA).
To tell you in a brief about why he got the unexplained cash tax notice, in 2011, he had booked a residential flat at Kandawali West, Mumbai for a consideration of Rs 79.9 lakh from a Mumbai based builder. The sale agreement with the builder was executed on July 20, 2015 and he made the payment for this apartment during 2011 to 2018. These payments to the builder were made by him through his NRE/NRO account with HDFC Bank and also by his own brother, who is also an NRI.
