Amit Shantaram Bagade Vs ITO (ITAT Mumbai)
Summary: The Mumbai Bench of the Income Tax Appellate Tribunal considered two appeals filed by Amit Shantaram Bagade for AYs 2019-20 and 2020-21 against reassessment orders passed under section 147 read with section 144C(13) of the Income-tax Act, 1961. The appeals involved additions under section 69 relating to alleged cash/on-money payments for purchase of residential property from M/s City Corporation Limited. Since common issues were involved, the appeals were heard together, with ITA No. 832/Mum/2025 for AY 2019-20 treated as the lead case.
For AY 2019-20, the Revenue relied upon material found during a search conducted in the case of City Corporation Limited on 15-02-2023. According to the Assessing Officer, the assessee had made cash payments of Rs. 12 lakhs and Rs. 50 lakhs towards two flats, aggregating to Rs. 62 lakhs. The reassessment was initiated under sections 148A and 148, followed by proceedings under section 142(1). The assessee maintained that an earlier booking had been cancelled and that the final booking concerned Flat No. 98-17-02, with payments made through banking channels and no cash payment to the builder.
The assessee explained that the registered Agreement for Lease dated 22-02-2019 concerned Flat No. 1702, Tower No. 98, Gateway Tower, Amanora Park Town, jointly purchased with his wife for an agreed consideration of Rs. 1,11,23,584/-. The stated sources comprised overseas earnings and previous savings paid through banking channels of Rs. 70,23,584/- and a housing loan from State Bank of India of Rs. 41,00,000/-. The assessee also relied upon the developer’s records, bank statements, loan documents, allotment material, receipts and Index-II documents concerning comparable flats.
