Najmussaher Saeed Khan Vs ACIT (ITAT Mumbai)
The AO made additions of ₹30 lakh each (later restricted to ₹15 lakh each by CIT(A)) under Section 69 alleging on-money payment in cash for purchase of a flat, based solely on an excel sheet found in a third-party search and a general statement of the builder.
The ITAT held that:
- There was no direct evidence linking the assessees to any cash payment
- The builder’s statement was general and not specific to the assessees
- No independent enquiry or cash trail was established by the AO
The Tribunal emphasized that additions cannot be made merely on third-party documents and suspicion without corroborative evidence.
Accordingly, the entire addition was deleted in both cases, and the appeals were allowed.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
Captioned appeals are by two different assessees, arising out of two separate orders of learned Commissioner of Income Tax (Appeals), Mumbai, pertaining to the assessment year (A.Y. for short) 2017-18.
2. The common issue arising in both the appeals relates to addition made of Rs.15 lacs each in case of the assessee’s as unexplained investment u/s. 69 of the Income Tax Act, 1961 (‘the Act’ for short) on account of alleged on-money paid in cash towards purchase of a flat.
