Gaurav Ramesh Aher Vs ITO (ITAT Pune)
Pune ITAT Deletes ₹11 Lakh “On-Money” Addition: Payment for Additional Flat Work Through Banking Channels Cannot Be Treated as Unexplained Cash Payment
The Pune ITAT in Gaurav Ramesh Aher v. ITO deleted an addition of ₹11 lakh made towards alleged “on-money” paid for purchase of immovable property from M/s Atharva Builders and Developers for AY 2018-19.
The assessee had purchased the property for ₹34 lakh, whereas its market value was ₹27.21 lakh. The AO nevertheless alleged that a further ₹11 lakh represented on-money paid in connection with the purchase.
The Tribunal found that the alleged additional payment was actually connected with additional works carried out in the flat under a separate agreement. Crucially, the payment had been made through banking channels, was duly reflected in the assessee’s bank statement, and the source of the funds was not disputed by the Revenue. There was no evidence or reference whatsoever to any cash payment by the assessee.
The ITAT therefore found no merit in the CIT(A)’s finding and deleted the entire ₹11 lakh addition, observing in substance that merely because an amount was paid over and above the stated purchase consideration, it could not be characterised as unaccounted “on-money” when the payment was through disclosed banking channels and its source stood explained.
FULL TEXT OF THE ORDER OF ITAT PUNE
The captioned appeal at the instance of assessee pertaining to A.Y. 2018-19 is directed against the order dated 30.01.2026 of National Faceless Appeal Centre, Delhi passed u/s.250 of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) arising out of Assessment order dated 13.03.2023 passed u/s.147 r.w.s.144B of the Act.
2. The sole grievance of the assessee is against the addition for the alleged on-money paid at Rs.11,00,000/- for purchasing immovable property.
3. We have heard the rival submissions and perused the record placed before us. We observe that the assessee is an individual and the assessment u/s.147 r.w.s.144B of the Act for A.Y. 2018-19 has been carried out wherein the ld. Assessing Officer made an addition of Rs.11.00 lakh for the alleged on-money for purchase of immovable property from M/s. Atharva Builders and Developers. With the assistance of ld. Counsel for the assessee and the details filed in the paper book running into 163 pages, we find that the purchase consideration for acquiring the immovable property paid by the assessee is Rs.34.00 lakh as against the market value of Rs.27,21,000/-. Further, regarding the alleged on-money, there is reference in para 3.6 of the assessment order, however, the payment has been made by the assessee through banking channel vide a separate agreement for the additional works carried out at the Flat purchased by the assessee. We find that there is no reference of any cash payment by the assessee and even though not admitted by the ld. Counsel for the assessee, if any payment has been paid over and above the purchase consideration, the same has been made through banking channel and is duly reflected in the bank statement filed by the assessee and the source of such funds is not in dispute before us. We therefore fail to find any merit in the finding of ld.CIT(A) and therefore the impugned addition stands deleted. Finding of ld.CIT(A) is reversed and the grounds of appeal raised by the assessee are allowed.
4. In the result, the appeal of the assessee is allowed.
Order pronounced on this 07th day of August, 2026.
