Shivaji Tukaram Pawale Vs ITO (ITAT Mumbai)
Mumbai ITAT: On-Money Addition Based Solely on Builder’s Statement Deleted for Denial of Cross-Examination
The Mumbai ITAT deleted the addition of ₹25 lakh made under section 69 towards alleged on-money payment for purchase of a flat, holding that the addition was based solely on the statement of the builder’s partners recorded under section 131 without furnishing a copy of the statement to the assessee or granting an opportunity to cross-examine the deponents. The Tribunal observed that the assessee had consistently denied making any cash payment over and above the documented sale consideration and had specifically requested the Assessing Officer to provide the statements and permit cross-examination. Since these requests were ignored, the Tribunal held that the principles of natural justice were violated, rendering the addition legally unsustainable. On the separate issue of deduction under section 80TTA, the Tribunal restored the matter to the Assessing Officer for verification and directed that the deduction be allowed if the assessee is otherwise eligible in accordance with law.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
This is an appeal by the assessee against order dated 16-1-2026 passed by National Faceless Appeal Center (NFAC), Delhi for the Assessment Year 2017-18.
