Gaurav Ramesh Aher Vs ITO (ITAT Pune)
Pune ITAT Deletes ₹11 Lakh “On-Money” Addition: Payment for Additional Flat Work Through Banking Channels Cannot Be Treated as Unexplained Cash Payment
The Pune ITAT in Gaurav Ramesh Aher v. ITO deleted an addition of ₹11 lakh made towards alleged “on-money” paid for purchase of immovable property from M/s Atharva Builders and Developers for AY 2018-19.
The assessee had purchased the property for ₹34 lakh, whereas its market value was ₹27.21 lakh. The AO nevertheless alleged that a further ₹11 lakh represented on-money paid in connection with the purchase.
The Tribunal found that the alleged additional payment was actually connected with additional works carried out in the flat under a separate agreement. Crucially, the payment had been made through banking channels, was duly reflected in the assessee’s bank statement, and the source of the funds was not disputed by the Revenue. There was no evidence or reference whatsoever to any cash payment by the assessee.
The ITAT therefore found no merit in the CIT(A)’s finding and deleted the entire ₹11 lakh addition, observing in substance that merely because an amount was paid over and above the stated purchase consideration, it could not be characterised as unaccounted “on-money” when the payment was through disclosed banking channels and its source stood explained.
FULL TEXT OF THE ORDER OF ITAT PUNE
