Preity Zinta scores big win as ITAT scraps Rs 10 crores tax demand

Preity Zinta has secured a major relief in her ongoing tax case, after the Income Tax Appellate Tribunal (ITAT) in Mumbai ruled in her favour and quashed a demand of Rs 10 crores. The dispute arose from her 2016 tax return, filed as a non-resident, in which she declared income of only Rs 46 lakh.

 

Preity Zinta scores big win as ITAT scraps Rs 10 crores tax demand

 

Tax authorities reopened the case after spotting substantial transactions totalling Rs 13.10 crores a credit of Rs 13 crores and a near-equivalent debit in a new savings account she had opened with Corporation Bank on January 25, 2016. After withdrawals, the account balance was just Rs 10,300. The department treated Rs 10 crores of these credits as unexplained cash under Section 68 of the Income Tax Act, effectively deeming them unaccounted income.

 

A draft assessment in March 2022 proposed revising her taxable income to Rs 11.3 crores, a move later upheld by the Dispute Resolution Panel (DRP) on December 31, 2022.

 

Preity challenged the findings before ITAT Mumbai. On November 17, 2025, a Coordinate Bench quashed both the DRP’s and the Assessing Officer’s findings. The tribunal determined that the reassessment had not been properly justified and instructed the authorities to revisit the merits of the case.

 

ITAT noted that the funds in her account related to genuine loan repayments. Preity had borrowed earlier from a private entity, using her flat at Quantum Park, Mumbai as security; the flat’s sale financed the repayment. Her explanations included loan history, sale deed, capital-gains calculations, bank statements, and transaction-wise documentation. Because the capital gains from the sale were already disclosed and relevant documentation was in place the deposited amounts could not be treated as unexplained income.

 

On the basis of these findings, ITAT fully rejected the Section 68 addition, thereby removing the Rs 10 crores tax demand.

 

Also Read : Preity Zinta makes a gleaming comeback with Swa diamonds’ powerful new campaign

Catch us for latest Bollywood News, New Bollywood Movies update, Box office collection,New Movies Release, Bollywood News Hindi, Entertainment News, Bollywood News Today & upcoming movies 2024 and stay updated with latest hindi movies only on Bollywood Hungama.