Pinkydevi Mahendrakumar Jain Vs ACIT (ITAT Mumbai)
On-Money Addition Deleted in Platinum Mall Cases – Third-Party Pen Drive & Statements Not Sufficient – Sec 153C Addition Quashed – ITAT Mumbai
Based on a search in Rubberwala Group, AO invoked sec 153C and added ₹5 lakh alleging cash payment (“on-money”) for purchase of shop in Platinum Mall, relying mainly on a pen drive, excel sheets and statement of a third-party employee. CIT(A) confirmed the addition.
ITAT held that no incriminating material directly linked to the assessee—such as cash receipts, signed documents or corroborative evidence—was found. Addition based solely on third-party statements and digital data without independent verification or cross-examination violates principles of natural justice. The Tribunal noted that identical additions in the same search had already been deleted by coordinate benches.
Further, the assessee had purchased the property at value higher than stamp duty valuation and AO failed to bring any comparable transactions or independent evidence to support alleged cash payment. Relying on multiple precedents including Andaman Timber Industries (SC), ITAT deleted the addition and allowed all appeals.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
These appeals have been preferred by the Assessee against the composite orders dated 22.08.2025 and 13.08.2025 qua Pinkydevi Mahendrakumar Jain and Pushpa Vikas Jain respectively, impugned herein, passed by Ld. Commissioner of Income Tax (Appeals) (in short Ld. Commissioner) u/s 250 of the Income Tax Act, 1961 (in short ‘the Act’) for the A.Y. 2019-20 and 2020-21.
