Tarun Gupta Vs ACIT (ITAT Delhi)
Unsigned Agreement & Vague Satisfaction Note – ITAT Delhi Quashes Additions & Assessments
Delhi Tribunal delivered a consolidated order in the appeals of Tarun Gupta for AYs 2019-20, 2020-21 & 2021-22, where additions were made on alleged receipt of cash based on unsigned photocopies of agreement to sell & on the basis of a defective satisfaction note recorded for initiating proceedings u/s 153C. Tribunal quashed the assessments, granting full relief to Assessee.
Assessee jointly owned property at Delhi. Sale consideration declared was ₹1.49 crores, out of which Assessee’s share was 50%. AO alleged that actual sale consideration was ₹4.49 crores as per an unsigned photocopy of an agreement to sell dated 06.08.2018 (found at a third-party premises) & treated the difference of ₹3 crores as unaccounted cash. Consequently, addition of ₹1.50 crores was made in Assessee’s hands.
CIT(A) confirmed addition relying on the photocopy & AO’s satisfaction note. Assessee appealed before Tribunal.
Tribunal’s observations on AYs 2019-20 & 2020-21
Tribunal noted that co-owners of the same property , Smt. Renu Singh & Shri Pradeep Singh, had already been granted relief vide ITAT orders dated 25.11.2024, wherein similar additions were deleted. Key findings adopted in Assessee’s case were:
