YASHPAL CHARAN ACIT, PAREL vs. MUKESH JAVERCHAND MEHTA, ZAVERI BAZAR

We have heard the counsel for the parties, perused the material placed on record, the judgments cited before us, and the orders passed by the Revenue authorities. From the records, we notice that, as per the facts of the present case, the assessee had filed its return of income, which was processed under section 143(1) of the Income-tax Act. However, a search and seizure action was conducted in the case of M/s Nish Developers Private Limited and group cases. During the said search operation, it was revealed that a cash amount of Rs. 7.30 crore, being Rs. 6.80 crore pertaining to AY 2011-12 and Rs. 50 lakh pertaining to AY 2012-13, in the name of the assessee, namely, Mukesh J. Mehta, for the purchase of a flat in Project "Avigna Park", had been paid in cash. Consequently, additions were made in the hands of the assessee.

On the contrary, from the very beginning, the assessee had taken a specific stand and explained that he had not made any such cash payment to the said builder for the purchase of the flat and that the entire transaction for the purchase of the flat had been made through proper banking channels. However, while relying upon the statements recorded during the course of the search action, additions were made in the hands of the assessee. On appeal, the Ld. CIT(A) deleted the said additions while relying upon the decision of the Coordinate Bench of the ITAT on a similar set of facts. The operative portion of the order of the Ld. CIT(A) is contained in para 4 and the same is reproduced herein below:

After considering the facts of the present case, hearing the parties at length, and perusing the records, we notice that the Coordinate Bench of the ITAT has already deleted the additions in the cases of the respective assessees on an identical set of facts, and the details thereof are mentioned in the order of the Ld. CIT(A). Since the Ld. CIT(A) has taken the decision by following the decisions of the Coordinate Benches of the ITAT on similar facts involving M/s Nish Developers Private Limited with respect to the same issue, and moreover, no new facts or circumstances have been brought before us by the Ld. DR to controvert or rebut the findings recorded by the Ld. CIT(A), we find no reason to interfere with the said findings.

Accordingly, we dismiss the grounds raised by the Revenue and uphold the order passed by the Ld. CIT(A).

In the result appeal filed by the Revenue stands dismissed.

This appeal is filed by the Assessee against the order of the Ld. Commissioner of Income Tax (Appeals) vide DIN: ITBA/APL/S/250/2025- 26/1084903689(1) dated 19-Jan-2026 for the Assessment Year 2012-13.

Since the facts in this appeal are similar to those in ITA No. 6972/MUM/2026, the findings and decisions rendered in the above paragraph shall apply mutatis mutandis to this appeal also.

Accordingly grounds raised by the assessee stands allowed.

In the result appeal filed by the assessee stands allowed and appeal filed by the Revenue stands dismissed.