Amarjot Singh Sohi Vs ITO (ITAT Chandigarh)
On-Money Addition Fails Without Proof: Third-Party Excel Sheet Not Enough
The Chandigarh Bench of the Income Tax Appellate Tribunal (ITAT) deleted the addition of ₹8 lakh made under section 69 read with section 115BBE, holding that the Revenue failed to prove any actual cash payment (“on-money”) by the assessee for purchase of a shop.
The reassessment was initiated solely on the basis of information arising from a search on the seller group (Omaxe Ltd.), wherein an Excel sheet recovered from a third party allegedly reflected cash payments. The assessee consistently denied any cash payment and demonstrated that entire consideration was paid through banking channels, supported by bank statements, Form 26AS, confirmation from the seller, and an affidavit.
The Tribunal noted that no opportunity of cross-examination of the officers of Omaxe Ltd., whose statements were relied upon, was ever provided—resulting in a clear violation of principles of natural justice. It was further held that the onus lay on the Assessing Officer to establish actual exchange of cash, which was not discharged. A mere third-party electronic record, without corroboration, cannot justify an addition.
Emphasising that an assessee cannot be asked to prove a negative and that additions cannot rest on presumptions or assumptions, the ITAT held the addition to be unsustainable in law. The Assessing Officer was directed to recompute the income, and the appeal was allowed
FULL TEXT OF THE ORDER OF ITAT CHANDIGARH
