The Delhi ITAT has deleted the addition on on-money which was made on the basis of excel sheet.
The proceedings under section 153C of the Income-tax Act, 1961 was initiated on the basis of information received from the Assessing Officer of certain parties regarding search conducted on 04.09.2013 on the HN Safal Group. AO noted that during the course of search, documents pertaining to assessee were found. As per these details, assessee had paid on money of Rs.3,45,52,805/- to Adicorp Deal SG Project for the purpose of purchasing the shop/office during FY 2010-11. AO noted that it was also provided that the assessee had paid Rs.3,71,16,000/- in cheque for the same property.
AO further noted that on perusal of sale deed dated 20.12.2011, it was seen that assessee had purchased property from Adicorp Deal SG Project at a price of Rs.3,17,16,000/- during FY 2010-11. Assessee was asked to give his submissions regarding on money paid.
In absence of any response from the assessee, AO noted that property was jointly purchased by Deepak Bherwani and Smt. Lajwanti Bherwani. AO noted that as the assessee is joint owner of the purchased property, 50% of the amount paid as cash i.e. Rs.1,72,76,403/- was added to the income of the assessee u/s 69C of the Income-tax Act, 1961.
The tribunal noted that the addition of on-money has been made on the basis of excel sheet found from the search on the Safal group. CIT (A) has given a finding that from the dates mentioned by the AO, the transaction happened in 2012-13, however the on-money payment has been made in advance of one year which is not substantially justified and not as per trade practice. Furthermore, no other document or details has been referred by the AO. No other material is found from the assessee also. In these circumstances, on-money transaction in this case is not proved. It is also not the case that any valuation of the property was done by the Revenue to prove that value of the property was more than the value reflected in the registration document. CIT(A) has given a correct finding that AO has not brought on record any cogent document to sustain the on-money in the case of the assessee.
ACIT V/s Deepak Bherwani