Mitu Mohindru Vs ACIT (ITAT Delhi)
AO Blindly Relies on NMS Data, ITAT Deletes ₹1.23 Cr Addition Based on Actual Sale Deed of ₹30 Lakh
In this case, Assessee did not file return for A.Y. 2016-17. Based on NMS data, AO noticed that Assessee had (i) purchased an immovable property allegedly for ₹1,23,00,000 & (ii) received interest income of ₹19,063. Accordingly, reassessment was initiated u/s 147 & final assessment order was passed u/s 147 r.w.s. 144C(13) making addition of ₹1,23,00,000 u/s 69 as unexplained investment.
Assessee contended before Tribunal that she never invested ₹1,23,00,000 in the property. She produced the registered sale deed showing actual consideration of only ₹30,00,000, which was even higher than the prevailing circle rate of ₹29,82,194. Hence, there was no evidence whatsoever of any investment of ₹1,23,00,000. The Department could not produce any material to prove that the property was purchased for ₹1,23,00,000 or that the registered value was different.
Tribunal observed that the addition was made merely on assumption without any supporting evidence. Since the registered sale deed clearly reflected ₹30,00,000—which was higher than circle rate—& there was no contrary material from Department, the addition u/s 69 was baseless. Therefore, the addition of ₹1,23,00,000 was deleted & the appeal of the Assessee was allowed.
