EI Resorts & Clubs Pvt Ltd Vs DCIT (ITAT Mumbai)
Invalid DIN & Faceless Violation Render Reassessment Void-Excel Sheets Are Dumb Documents: ITAT Mumbai Deletes ₹13.55 Cr Addition- Uncorroborated Statements Can’t Tax Imaginary Cash
Key Issue:
Additions u/s 69A/69B on basis of excel sheets & statements recorded during search in the case of the Sakseria Group regarding alleged cash investments in land.
Facts:
Assessee, part of the Sakseria Group, was engaged in acquiring land at Kolgaon. During search on the group on 07-10-2021, Excel sheets were found from the laptop of Mr TNS showing cheque & alleged cash components for land purchases. Statements of TNS & his father Mr NKS were recorded. AO treated the column “B” figures as unaccounted cash investment & made additions u/s 69A/69B based solely on these sheets & statements. Both TNS & NKS later retracted their statements, explaining that the Excel sheets were management information statements (MIS) prepared by a land aggregator (Late Pratap Gambhir – PDG), showing estimated costs & projected profits & not actual cash payments. CIT(A) reduced addition from ₹13.55 crore to ₹2.58 crore but upheld the balance.
Assessee’s Contentions:
Excel sheets were dumb documents prepared by PDG, not by Assessee. Statements were retracted with valid reasons; no corroborative evidence was found. AO failed to verify any counterparties or prove actual cash flow. Reassessment notice u/s 148 issued by Jurisdictional AO instead of Faceless AO; assessment order carried manual DIN in violation of CBDT Circular No. 19/2019.
