Ishwarlal Javahara Ram Purohit Vs DCIT (ITAT Mumbai)
Cash Component Addition U/s 153C Deleted – Pen Drive & Third-Party Statements Without Cross-Examination Held Insufficient – ITAT Mumbai
Addition of ₹2 lakh alleged cash component paid for purchase of shop in Platinum Mall was made u/s 153C based on search in Rubberwala Group where pen drive, excel sheets & third-party statements suggested receipt of on-money. Tribunal observed that no incriminating material directly linking assessee (such as cash vouchers, receipts or signed documents) was found during search and AO relied solely on third-party evidence without granting cross-examination, violating principles of natural justice.
ITAT noted that identical additions arising from same search, same pen drive & same statements were already deleted in several coordinate bench decisions. Further, property was purchased at value higher than stamp duty value and AO failed to bring comparable evidence or independent corroboration. Holding that suspicion or excel entries recovered from third party cannot sustain addition without direct evidence and confrontation opportunity, Tribunal deleted additions for A.Ys. 2017-18 to 2019-20 and allowed assessee’s appeals.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
This appeal has been preferred by the Assessee against the common order dated 03.09.2025, impugned herein, passed by Ld. Commissioner of Income Tax (Appeals) (in short Ld. Commissioner) u/s 250 of the Income Tax Act, 1961 (in short ‘the Act’) for the A.Ys. 2017-18, 2018-19 and 2019-20.
