Sahil Salim Zari Vs ITO INT. Tax (ITAT Mumbai)
SECTION 69A CANNOT DEMAND A PASSPORT FOR EVERY DOLLAR — FOREIGN CASH SAVINGS EXPLAIN ₹30 LAKH PAID FOR FLAT
₹30 lakh paid outside the agreement
The assessee, a qualified medical professional specialising in diabetic-foot care, purchased Flat No. C-1502 in the project “Midas-Bhoomi Harmony”, Kurla, Mumbai.
During a search u/s 132 conducted in the case of the Bhoomi Group, loose papers were found recording unaccounted cash receipts against the sale of various units. The material contained two entries concerning the assessee’s flat:
₹21 lakh paid on 09.12.2019 & ₹9 lakh paid on 25.02.2020.
The entries contained the assessee’s PAN & particulars of the concerned flat. The agreement for purchase was subsequently executed on 20.03.2020 through the assessee’s father acting as his Power of Attorney holder.
Based upon the information received from the Central Circle, the assessment was reopened by issuing notice u/s 148.
Significantly, the assessee did not dispute the cash payment of ₹30 lakh over & above the consideration mentioned in the registered agreement. His case was that the amount came from accumulated savings out of salary & professional income earned abroad.
AO accepts the payment but rejects the source
