Monika Anand Gupta Vs ITO (ITAT Mumbai)
The Income Tax Appellate Tribunal (ITAT), Mumbai, allowed the appeal of the assessee for Assessment Year 2011-12 and deleted the addition of ₹4 lakh made towards alleged on-money payment for the purchase of a flat developed by Cosmos Group. The addition had been made in reassessment proceedings initiated under Sections 147 and 148 of the Income-tax Act, 1961. According to the Revenue, information received from the Investigation Wing indicated that the assessee and her husband had paid cash on-money of ₹8 lakh in connection with the purchase of a flat in the Horizon/Twilight project developed by Cosmos Group. Since the property was jointly held, the assessee’s share of the alleged cash payment was computed at ₹4 lakh. The Assessing Officer (AO) relied upon statements recorded during the search proceedings in the case of Cosmos Group, particularly the statement of Shri Suraj Parmar, one of the promoters, who had allegedly admitted that cash transactions were involved in the sale of flats, shops, and offices. The AO also referred to excel sheet and tally data allegedly recovered during the search to support the addition. Based on these materials, the AO concluded that income had escaped assessment and added ₹4 lakh to the assessee’s income. The Commissioner of Income Tax (Appeals) [CIT(A)] upheld the addition.
