Flat, FDs worth Rs 69 lakh and a tax shock — ITAT Mumbai ends 6-year tax standoff with this twist

In a significant ruling that underscores the growing complexity of tax scrutiny in high-value financial transactions, the Income Tax Appellate Tribunal (ITAT) Mumbai has deleted a major addition made by tax authorities against an Indian engineer who allegedly under-reported income while making substantial financial investments. The verdict comes six years after the dispute began, bringing relief to the taxpayer and drawing attention to the wide-ranging digital monitoring tools now used by the Income Tax Department. Advertisement

Tax advisory platform Tax Buddy explained the case revolved around an engineer who reportedly declared only minimal income in his Income Tax Returns (ITRs) but purchased a residential flat worth Rs 39 lakh and made fixed deposits (FDs) totaling Rs 30 lakh — amoun