Akhraj Pukhraj Chopra Vs DCIT (ITAT Mumbai)
ITAT Mumbai Deletes On-Money Additions: Third-Party Statements Without Corroboration Held Invalid
In these four connected appeals, Assessees challenged additions of ₹2,00,000 each made u/s 69 towards alleged on-money paid for purchase of shop units in “Platinum Mall”, based solely on statements of key persons of Rubberwala Group recorded during search on 17.03.2021. Tribunal noted that no incriminating material, document, diary, seized evidence or electronic record naming either Assessee was ever found, nor was any corroborative evidence of actual cash payment produced by Revenue. The alleged statements referred only to generic on-money practice & did not identify the Assessees. Importantly, copies of such statements, materials, or the pendrive relied upon were never supplied to Assessees, nor were the makers of the statements offered for cross-examination, resulting in violation of natural justice.
Tribunal relied heavily on its earlier detailed decision in Pravin Khetaramm Purohit (15.10.2025) & multiple precedents including Andaman Timber, Odeon Builders, H.R. Mehta, Heena Dashrath Jhanglani, holding that additions based only on third-party statements without confrontation or corroboration cannot survive. Since no evidence directly showed that Assessees paid any on-money & Revenue failed to establish any nexus, Tribunal deleted the additions in full. Ground against validity of assessment u/s 153C was not pressed in one appeal, but since additions were deleted on merits, identical relief was extended to all connected years. All four appeals were allowed.
