Indian Tax Tribunal Orders Re-examination of Rs 2.59 Crore NRI Deposit Case

The Mumbai Income Tax Appellate Tribunal has directed tax authorities to conduct a fresh review of a Rs 2.59 crore tax demand against Kaushik Narottam Soni. The matter stems from the 2019-20 assessment year, during which Soni held non-resident Indian status.

Tax officials originally flagged a Rs 1.5 crore joint fixed deposit through the tax department's portal. Because Soni did not provide supporting records during initial proceedings and the bank failed to reply to official inquiries, the officer treated the deposit as unexplained investment and added it to his taxable income.

Soni maintains that the deposit was entirely funded and owned by his father, who was also an NRI, using money from an NRE account. He stated his name was added only for administrative ease and smooth asset transfer, arguing that foreign income earned by non-residents is not taxable in India.

Without ruling on ownership or canceling the tax addition, the tribunal determined that newly presented bank records are vital to resolving the dispute. It instructed the Assessing Officer to verify a source statement and a bank certificate identifying Soni's father as the primary holder before concluding the case.