Sunil Kumar Mukka Vs DCIT (ITAT Hyderabad)
The two appeals arose from identical additions made following a search in the case of M/s. MSR India Ltd. & its Director Shri M. Srinivasa Reddy, who was also associated with M/s. Mirchi Developers Pvt. Ltd. – the real estate company that sold plots to the Assessees. During the course of search, the Investigation Wing seized certain documents that recorded sale transactions showing higher sale consideration than what appeared in registered sale deeds.
In the case of Shri Sunil Kumar Mukka, Assessee had purchased Plot at Domer Pochampally Village from Mirchi Developers Pvt. Ltd.. The registered sale deed dated 31.01.2019 reflected consideration of ₹22,05,000, whereas the seized documents recorded the total sale price as ₹77,17,500. On examining the seized papers, AO alleged that Assessee had made cash payments totalling ₹29,80,403 on various dates towards this purchase & added the same as unexplained investment u/s 69. AO further noted that Assessee’s bank account showed deposits of ₹89,000 in cash & ₹3,50,000 by cheque, which Assessee claimed were gifts from his father & mother. AO found matching cash deposits in the parents’ accounts before transferring the funds & disbelieved the gifts, adding ₹4,39,000 as unexplained. Accordingly, AO completed assessment u/s 153C on 23.02.2024, determining total income at ₹39,70,073, including the above additions. CIT(A) upheld the assessment in full.
