Ramesh Deora Vs DCIT (ITAT Mumbai)
The appeal was filed against the order dated 19.08.2025 passed by the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi, for Assessment Year 2016–17. The assessment had been completed under Section 143(3) read with Section 147 of the Income Tax Act, 1961, pursuant to reopening of assessment.
The assessee had originally filed his return on 31.03.2017 declaring total income of Rs. 3,57,550. During the year, he and his wife sold an immovable property for Rs. 2,90,00,000. This transaction was not reflected in the original return. The case was reopened and notice under Section 148 was issued. In response, the assessee filed a return declaring income of Rs. 3,90,600 including capital gains.
The Assessing Officer (AO) examined the property transaction and relied upon a soft copy of an unsigned and unnotarized Memorandum of Understanding (MOU) found during a survey under Section 133A conducted on 13.06.2020 in the case of Dave Group. The digital document, recovered from the laptop of Shri Ravi Dave, mentioned total consideration of Rs. 2,90,00,000, including a cash component of Rs. 1,01,00,000 and certain Cheque payments. A soft copy of the sale deed was also found. The AO observed that the sale consideration disclosed by the assessee and his wife was Rs. 1,45,00,000 as against Rs. 2,90,00,000 mentioned in the MOU. Holding that the assessee had concealed part of the consideration, the AO added Rs. 72,50,000, being half of the total consideration received jointly.
