Ghewar Chand Jain Vs DCIT (ITAT Mumbai)
Mumbai ITAT deleted additions made u/s 69 towards alleged cash (on-money) payment for purchase of shop in the Platinum Mall (Rubberwala Group) case.
The Tribunal held that:
- The addition was based solely on third-party statements and Excel data from a pen drive, with no incriminating material found from the assessee
- The alleged evidence was neither confronted nor subjected to cross-examination, violating principles of natural justice
- No independent corroborative evidence was brought on record to establish actual cash payment by the assessee
- Even though the developer admitted on-money and paid tax, such admission cannot be used against the buyer without direct linkage
The ITAT emphasized that:
- Unverified electronic data and third-party statements lack evidentiary value without corroboration
- Additions cannot be sustained on mere suspicion or generalized information from search in another case
Following consistent coordinate bench rulings and Gujarat High Court precedent, the Tribunal held the addition unsustainable in law and on facts.
Accordingly, the addition was deleted, and the assessee’s appeals were allowed in full.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
Both the appeals filed by the same assessee against the order of the Ld. Commissioner of Income Tax(A)-52, Mumbai [for brevity the “Ld. CIT(A)”], order passed under section 250 of the Income Tax Act 1961 (for brevity ‘the Act’) for Assessment Year 2019-20 and 2020-21, date of order 11.10.2025. The impugned orders emanated from the order of the Ld. Assistant Commissioner of Income Tax Central Circle 4(2), Mumbai (for brevity the ‘Ld. AO’) order passed under section 153C of the Act date of order 09.03.2024 and 10.03.2024 for A.Y. 2019-20 and 2020-21 respectively.
