Ashutosh Pandurang Patil Vs ITO (ITAT Pune)
Pune ITAT Deletes ₹10 Lakh Addition for Alleged Cash Payment on Flat Purchase – Truncated Seized Document & Uncorroborated Statement Have No Evidentiary Value
The Pune ITAT deleted the addition of ₹10 lakh made on account of an alleged cash payment for the purchase of a flat, holding that the Revenue had failed to establish that any cash consideration had actually passed from the assessee to the builder. The assessee consistently denied making any cash payment and produced the registered sale agreement, housing loan sanction letter, bank statements, payment receipts and a chart of payments, demonstrating that the entire consideration was paid through banking channels. The Tribunal found that the Assessing Officer had relied only on a truncated copy of a seized loose paper, without furnishing the complete document to the assessee or establishing that it related to the Sai Vista project or evidenced any cash payment by the assessee.
The Tribunal further held that the statement of the builder’s representative, Mr. Kanhaiyalal Matani, was of no evidentiary value, as it did not specifically allege receipt of cash from the assessee, the complete statement was not supplied, and no opportunity for cross-examination was provided. Once the assessee had rebutted the allegation with documentary evidence, the burden shifted to the Revenue, which failed to produce any cogent material proving the alleged on-money payment. Relying on the Rajasthan High Court’s decision in CIT v. Bhanwarlal Murwatiya, the Tribunal held that mere suspicion or uncorroborated documents cannot justify an addition unless actual payment is proved, and accordingly directed the Assessing Officer to delete the addition of ₹10 lakh. The assessee’s appeal was allowed.
FULL TEXT OF THE ORDER OF ITAT PUNE
This is an appeal filed by the Assessee against the order of the Learned Commissioner of Income Tax (Appeals), NFAC, Delhi [Ld.CIT(A)], passed u/s. 250 of the Income Tax Act, 1961 (‘the Act’) for AY2023-24 on27.01.2026, emanating from the Assessment Order u/s 143(3) r.w.s.144B of the Act, dated04.02.2025.
