Rajagopal Saravanan Vs ACIT (ITAT Chennai)
ITAT Chennai held that addition towards on-money sale amount based on the third-party statement without any cogent positive evidence to sustain addition is unsustainable in law.
Facts- The sole grievance of the assessee, vide the present appeal, is confirmation of addition of alleged on-money of Rs. 5 Crores on sale of certain property.
Notably, as per assessee one of property located at Perambur, Chennai was sold to S. Selvakumari for Rs.16 Crores. However, pursuant to search action u/s 132 on Shri R. Sabapathy group, a small notebook was found from Saravana Store Jewellery, Pursasiwakkam. The same provided details of cash loans received by Shri R. Sabapathy of Rs.25 Crores for the purpose of investment in immoveable properties.
A statement was also recorded from Shri R. Sabapathy. He stated that cash loans were taken by him to pay for the purchase of immoveable properties at Perambur. He specifically stated that the property at Perambur was purchased for his sister Smt. Selvakumari for consideration of Rs.21 Crores and he paid Rs.5 Crores in cash over and above the registered value to the assessee.
Thus, the assessee was said to have sold the property for Rs.21 Crores including Rs.5 Crores as was evident from the seized material and sworn statement recorded from Shri Sabapathy during search. However, the assessee declared sale consideration of Rs.16 Crores only and accordingly, AO proceeded to add the differential of Rs.5 Crores to the income of the assessee.
