Preity Zinta's ₹10 crore tax dispute explained
What's the story
Bollywood star Preity Zinta was in a major tax dispute with the Income Tax Appellate Tribunal (ITAT). The dispute started when Zinta filed her 2016 return as a non-resident with an income of ₹46 lakh, but the IT department proposed revising it to ₹11.3 crore due to suspected undisclosed transactions in her bank account. Now, the tribunal has quashed a tax demand of nearly ₹10 crore raised against her by the IT department.
Tribunal ruling
ITAT Mumbai directed the reassessment of Zinta's case
The ITAT Mumbai sided with Zinta, saying the Assessing Officer and the Dispute Resolution Panel (DRP) had not adequately considered the reasons for reopening her case. The tribunal ordered the department to reassess her case based on its merits. Notably, the draft assessment order proposing changes to her reported income was issued on March 31, 2022, by an IT officer. Zinta challenged this, but the DRP upheld the tax department's call in December 2022.
Transaction details
Zinta's bank transactions under scrutiny
The IT department flagged credits and debits totaling ₹13.1 crore in a new savings account that Zinta opened with Corporation Bank in January 2016. The account had a deposit of ₹13 crore and a withdrawal of the same amount, leaving only ₹10,300. The department treated ₹10 crore of this credited amount as unexplained cash credit under Section 68, leading to the tax demand against her.
Case details
Zinta's defense and ITAT's final decision
Zinta defended herself by saying that the reopening of the assessment was not justified. The ITAT agreed with her, stating that the Assessing Officer and DRP had not properly considered the reasons for reopening her case. The tribunal's order on November 17, 2025, gave Zinta a victory in this long-standing dispute. She was represented by advocates Dharan Gandhi and Vinita Nara during this legal battle.