Last Updated:December 02, 2025, 20:33 IST

Preity Zinta wins Rs 10-crore tax dispute as ITAT Mumbai overturns earlier orders, citing reassessment lapses.

Preity Zinta won her tax case.

The Income Tax Appellate Tribunal (ITAT) in Mumbai has set aside a tax demand of nearly Rs 10 crore raised against Preity Zinta, ruling that the reassessment proceedings initiated against her were not examined correctly by the tax authorities.

The dispute began after Zinta filed her 2016 return as a non-resident, disclosing an income of Rs 46 lakh. During internal monitoring, the department detected a series of high-value transactions in one of her bank accounts, prompting the Assessing Officer to reopen the case under Section 147 for possible undisclosed income.

A draft assessment order issued on March 31, 2022 proposed revising her income to Rs 11.3 crore. Zinta challenged the move before the Dispute Resolution Panel (DRP), but the panel upheld the additions on December 31, 2022. The final assessment order was later passed on January 23, 2023.

Officials had identified credits and debits amounting to Rs 13.10 crore in a new savings account she opened at Corporation Bank in January 2016. The account showed a deposit of Rs 13 crore followed by a withdrawal of the same amount, leaving only Rs 10,300. The department treated Rs 10 crore of the credited amount as unexplained cash credit under Section 68.

Zinta appealed the decision at ITAT Mumbai, arguing that the reopening of the assessment lacked proper justification. The tribunal agreed, observing that both the Assessing Officer and the DRP had not sufficiently evaluated the basis for reopening the case. It directed the department to revisit the reassessment process and review the matter on its merits.

With the tribunal’s order dated November 17, 2025, Zinta prevailed in the long-running dispute. She was represented by advocates Dharan Gandhi and Vinita Nara.

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