Dilip Prasad/ACIT Vs Alap Somabhai Patel (ITAT Ahmedabad)
The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) dealt with a batch of appeals arising from a search conducted in the Popular Group, Ahmedabad, involving alleged on-money transactions in the sale of non-agricultural land situated at Godhavi village. The Revenue challenged the orders of the Commissioner of Income Tax (Appeals) [CIT(A)] deleting additions made on the basis of alleged unaccounted consideration, while the assessees filed cross-objections.
The dispute centered around a loose handwritten sheet seized during search proceedings from one of the land sellers. The document contained figures such as “85”, “40”, and “30” and a notation “Godhavi 34000 × 25000 = 85 Cr.” The Assessing Officer (AO) treated these notings as evidence of actual sale consideration received in excess of the amounts disclosed in registered sale deeds. By applying a rate of ₹25,000 per square meter to land sold in various transactions, the AO estimated substantial on-money receipts and made additions under Sections 69A and 69 of the Income-tax Act.
The assessees contended that the seized paper merely contained projections, estimates, liabilities, and future investment planning. It was argued that the notings did not contain names of purchasers, survey numbers, dates of transactions, details of cash payments, signatures, or any other particulars linking them to actual land sales. The assessee further explained that the document represented projections prepared in connection with family discussions regarding future acquisition of land after disputes arose following the sale of ancestral properties.
