Case Law Details
Yash Synthetics Private Limited Vs ACIT (ITAT Mumbai)
ITAT deletes addition for On Money as document falls short of certain material facts, viz. date and mode of receipt of “on money‟, who had paid the money, to whom the money was paid, date of agreement etc.
Yash Synthetics Private Limited contested an addition of Rs. 1.61 crores made by the Assessing Officer under section 69A of the Income Tax Act for the assessment year 2013-14. The dispute arose from cash receipts noted in documents seized during survey operations at M/s. Shah Housecon Private Limited, with whom Yash Synthetics had transactions related to property purchases.
The core issue revolved around the veracity of a document showing cash receipts against specific flat purchases by Yash Synthetics. The Assessing Officer relied on this document, supported by statements from the builder’s accountant and director, to conclude that Yash Synthetics had made undisclosed cash payments. However, Yash Synthetics contested these entries, asserting all payments were made via cheques and denying the authenticity of the document’s entries.
During proceedings, the Income Tax Appellate Tribunal (ITAT) Mumbai analyzed the evidence closely. ITAT noted discrepancies: the document’s dates did not align with actual allotment or registration dates of the properties. Moreover, the statements relied upon lacked evidentiary value under section 133A of the Act, necessitating additional corroborative evidence which the Assessing Officer failed to produce.
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