DCIT Vs Niru Dhiren Shah (ITAT Mumbai)
Facts:
1. The assessee, Shri Niru Dhiren Shah, filed his return of income for A.Y. 2022–23 declaring total income of Rs. 30,50,500. A search and seizure operation under section 132 was carried out on 27.10.2021, wherein certain documents and electronic data were found at premises of parties connected to a purchaser of property allegedly transacted with the assessee. Subsequently, the case was taken up for scrutiny. The Assessing Officer completed the assessment under section 143(3) and determined total income at Rs. 3,47,15,985, making substantial additions on account of alleged unaccounted cash receipts.
2. During post-search enquiries, the AO relied upon a registered sale deed dated 28.09.2021, pertaining to Shop No.5, showing a declared sale consideration of Rs. 3,38,59,224, with the corresponding Stamp Duty/Index II valuation of Rs. 2,56,17,339. The assessee was considered connected with this transaction.
3. Additionally, a WhatsApp conversation seized from the purchaser’s side (between the purchaser’s son and his accountant) contained a screenshot of an Excel spreadsheet computing property value using market rate × area based on a government registration website. By adopting these rates, the AO estimated a “market value” of Rs. 6,55,24,709 for the same property.
4. The AO treated the difference between this estimated market value and the registered sale price as undisclosed cash consideration allegedly received by the assessee, amounting to Rs. 3,16,65,485. This was added under sections 69 / 69A, treating it as unexplained money.
