Meena Lalit Jain Vs ACIT (ITAT Mumbai)
ITAT Mumbai: “On-Money” Addition Crumbles Without Evidence – Platinum Mall Case
In a significant ruling, the ITAT Mumbai deleted additions made under Section 69 across three assessment years, where the Assessing Officer alleged cash (“on-money”) payments for purchase of shops in the Platinum Mall project. The entire addition was based on third-party statements and an excel sheet seized from another party during a search.
The Tribunal held that no incriminating material was found from the assessee, and the addition was built solely on third-party statements and unverified electronic data. Crucially, the complete excel sheet was never furnished, and the assessee was denied a meaningful opportunity to rebut the material, violating principles of natural justice.
Further, the year-wise bifurcation of alleged cash payments lacked any evidentiary basis, as the underlying data did not contain dates or clear linkage to specific years. The Tribunal emphasized that mere admission of “on-money” by the developer or internal records cannot automatically implicate the buyer without independent corroboration.
Relying on consistent coordinate bench rulings in similar Rubberwala group cases, the ITAT reiterated that additions cannot be sustained merely on suspicion or third-party material without corroborative evidence and proper confrontation.
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