Swati Agrawal Vs ITO (ITAT Agra)
Builder’s Excel Sheet Cannot Become a Buyer’s Tax Bill Without Proof
Information May Trigger Reopening, but Addition Requires Evidence
The Agra Bench of the Income Tax Appellate Tribunal deleted an addition of ₹2,50,000 under Section 69A read with Section 115BBE, which was based on an Excel sheet recovered during a search on a builder group and statements recorded from its employees. The Tribunal found that the alleged cash payment was unsupported by corroborating evidence, while the assessee had not been given an opportunity to cross-examine the persons whose statements were relied upon.
The decision draws a significant distinction between information sufficient to initiate reassessment and evidence sufficient to sustain an addition. An investigation report may justify further examination. However, an allegation appearing in a third party’s electronic record does not, by itself, establish that the assessee made an unaccounted cash payment.
Search on Builder Leads to Reassessment of Buyer
The assessee had filed her return for Assessment Year 2020-21 on 2 January 2021, declaring income of ₹5 lakh from salary and other sources. The return was processed and accepted through an intimation dated 5 January 2021.
Subsequently, the Investigation Wing conducted a search under Section 132 on Bhutani Infra Group and Associates on 4 January 2024. The material recovered included Excel sheet data stored in a pen drive. Statements of employees of the builder group were also recorded on oath.
