Third-Party Excel Sheet Cannot Prove Unexplained Cash Investment: ITAT Agra

Babita Verma Vs ITO (ITAT Agra)

Summary: ITAT Agra allowed the assessee’s appeal and deleted an addition of Rs 9,75,000 made as unexplained investment under section 69 of the Income-tax Act, 1961. The assessee had filed her return for assessment year 2019-20 declaring total income of Rs 4,37,970. Her case was subsequently reopened under section 147 on the basis of information arising from a search conducted under section 132 on Omaxe group on 14.03.2022. The Revenue alleged that an Excel file described as the “MAIN REPORT” showed an unaccounted cash payment of Rs 9,75,000 by the assessee for purchase of property in Omaxe Residency II, Lucknow. The assessee consistently denied having made the alleged cash payment.

The Assessing Officer relied upon the Excel sheet and statements allegedly recorded under section 132(4) from Shri Vikas Goel, AGM Finance, Lucknow Project, and Shri Manish Kumar, President of Omaxe group. However, despite the assessee specifically seeking certified copies of the seized documents and statements, the material was not furnished either during assessment proceedings or before the CIT(A). The Tribunal observed that the Excel sheet reproduced in the assessment order did not even contain the assessee’s name and did not state that she had paid Rs 9,75,000 in cash to Omaxe group. It further held that statements recorded behind the assessee’s back could not be used adversely without first furnishing them for rebuttal and, where requested, providing an opportunity of cross-examination. The Tribunal also noted that since the Excel sheet had admittedly been seized from Omaxe Limited, the statutory presumption under section 292C operated in relation to Omaxe group. The Revenue had not brought cogent evidence on record establishing that the assessee had actually made the alleged cash payment. The addition was therefore held to suffer from factual and legal infirmities and was deleted. The assessee’s appeal was allowed.