Munjal Mrugesh Jaykrishna Vs DCIT (ITAT Ahmedabad)
ITAT Ahmedabad held that addition u/s. 69A towards unexplained money [on-money transaction] simply on the basis of presumptions without any concrete evidence is liable to be deleted. Accordingly, addition u/s. 69A deleted as it lacks a valid basis.
Facts- Based on the information received regarding on-money transaction to Navratna Organizers and Developers Pvt Ltd (NODPL) in purchase of Unit/Villa amounting of Rs.95,56,000/-, the Assessing Officer observed that the same had been escaped assessment; thus, he reopened the assessment u/s. 147 of the Act. Subsequently, AO framed the assessment u/s 147 r.w.s. 144B of the Act on 28.03.2022, making addition of Rs. 95,56,000/- as per the provision of Section 69A of the Act.
CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- Held that there is no specific mention or direct evidence linking the assessee to this alleged on-money transaction. In the absence of any concrete evidence that the assessee was involved in undisclosed transactions, making an addition solely on presumptions is unsustainable. Any such addition must be backed by clear, conclusive proof rather than general confessions made by third parties. Thus, the addition made to the income of the assessee needs to be deleted as it lacks a valid basis. Since the addition made by the Assessing Officer is deleted on merits, any adjudication on the issue of reopening u/s 148 becomes academic in nature and hence not resorted to. In the result, appeal of the assessee is allowed.
