Om Prakash Gupta Vs D/ACIT (ITAT Delhi)
ITAT Delhi Deletes ‘On-Money’ Addition u/s 69: Seized Page Relates to Son, No Corroborative Evidence
The Delhi Bench (Dehradun) of the ITAT allowed the assessee’s appeal for AY 2023-24 and deleted the addition of ₹57.97 lakh sustained by the CIT(A) under section 69 towards alleged undisclosed investment (“on-money”). The addition was based on a seized document found during a search in a group case.
The Tribunal noted that the seized page clearly bore the name of the assessee’s son, Manoj Gupta, and the entries pertained to him and his family members. This explanation was supported by affidavits of both the assessee and his son. Importantly, the sale deeds for the flats were executed at values higher than the prevailing circle rates, and there was no corroborative evidence—such as an agreement, cash trail, or parallel addition in the seller’s hands—to establish payment of any on-money.
In the absence of independent corroboration and with the Revenue failing to link the seized notings to the assessee, the ITAT held that the addition could not be sustained. Accordingly, the order of the CIT(A) was reversed and the entire addition was deleted. The appeal was allowed.
FULL TEXT OF THE ORDER OF ITAT DELHI
The present appeal is filed by the Assessee against the order of the Commissioner of Income Tax (Appeals)-3, Noida [‘Ld. CIT(A)’ for short] dated 04/06/2025 pertaining to Assessment Year 2023-24.
