Anupama Gupta Vs ITO (ITAT Chandigarh)
Addition Based on Multiplying Rs. 8,000 by 100 Quashed Due to Lack of Supporting Material; ITAT Removes Unexplained Investment Addition Because Cash Payment Allegation Was Unsubstantiated; Excel Sheet Found During Search Not Sufficient to Prove Cash Payment; ITAT Holds Suspicion Cannot Replace Evidence in Section 69 Addition Case
The Income Tax Appellate Tribunal (ITAT), Chandigarh, allowed the assessee’s appeal and deleted an addition of Rs. 8,00,000 made under Section 69 of the Income Tax Act on account of alleged cash payment for purchase of a flat from Omaxe Group. The case had been reopened under Section 147 based on information received from the Department’s Insight Portal alleging that the assessee had paid Rs. 8 lakh in cash during FY 2018-19 in addition to payments made through banking channels. The Assessing Officer relied upon statements of employees of Omaxe Group and digital data, including an Excel sheet recovered during a search operation, to conclude that the assessee made unexplained cash payments.
The assessee contended that the entire payment of Rs. 34,33,027 towards the property and development charges had been made through banking channels and no cash payment was made. It was further argued that the addition was based solely on loose sheets and Excel data recovered from a third party and that the Excel sheet merely reflected a figure of Rs. 8,000. According to the assessee, the Assessing Officer arbitrarily multiplied the figure by 100 to treat it as Rs. 8,00,000 without any supporting evidence or verification. The assessee also argued that there was no corroborative material such as receipts, bank statements, or signed documents linking her to any alleged cash payment.
