Mamta Sharad Gupta Vs ITO (ITAT Mumbai)
ITAT Deletes On-Money Addition Because Builder’s Statement Lacked Corroborative Evidence; Section 147 Addition Quashed Because Revenue Failed to Prove Alleged Cash Payment for Flat Purchase; ITAT Rules Statement Under Section 132(4) Cannot Be Used Against Third Party Without Corroboration; Addition for Alleged On-Money Payment Deleted Because Electronic Evidence Was Not Properly Proved
The Income Tax Appellate Tribunal (ITAT), Mumbai, allowed the appeal of the assessee and deleted the addition of ₹10.52 lakh made in reassessment proceedings under Sections 143(3) read with 147 of the Income-tax Act, 1961. The Tribunal held that the addition towards alleged on-money payment for the purchase of a flat from Cosmos Group was unsustainable as it was based solely on the statement of a promoter of Cosmos Group and uncorroborated electronic records, without any independent evidence linking the assessee to the alleged cash transaction.
The assessee challenged the order of the Commissioner of Income Tax (Appeals) [CIT(A)] for Assessment Year 2011-12, contending that the reassessment proceedings were invalid, that no opportunity for cross-examination had been granted, and that the addition was made without any incriminating material pertaining to her. The assessee also argued that statements recorded under Section 132(4) during search proceedings in the case of Cosmos Group could not automatically be used against a third party.
