Mamta Patel Vs ACIT (ITAT Raipur)
Third-Party Search, Third-Party Excel – ITAT Protects Genuine Buyer- No Cash, Only Bank Trail: Section 69 Addition Struck Down
Tribunal examined addition of Rs.5,07,690/- u/s 69 alleged as unexplained investment on the basis of an excel sheet seized during search on Wallfort Group. AO treated the amount as cash paid by Assessee for flat E-802 in Wallfort Heights & CIT(A)/NFAC upheld the view.
Assessee produced before Tribunal complete bank trail: RTGS of Rs.5,07,748.42 made on 22.07.2019, matching exactly with the figure in the seized excel sheet. Registered deed, bank statements & vendor’s written confirmation dated 02.04.2025 showed that no cash was ever received & the entry in excel was an inadvertent classification in “cash column”.
Tribunal held that Revenue had no direct evidence of cash payment, no benefit proved to Assessee, & both AO & CIT(A)/NFAC ignored documentary evidence on record. Such addition based solely on third-party search data without enquiry was arbitrary, perverse & unsustainable. Tribunal therefore set aside CIT(A)/NFAC order & directed AO to delete addition. Tribunal also noted that since material originated from third-party search, correct section should have been 153C and not 147, but refrained from adjudicating further since matter was decided on merits.
