CHAWLA CONSTRUCTION,DELHI vs. ITO WARD 62(1), DELHI

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ITA 3117/DEL/2026Status: DisposedITAT Delhi20 July 2026AY 2019-203 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal found that the lower authorities relied on assumptions and presumptions rather than concrete incriminating material to prove the 'on-money' payment. Consequently, the addition was deemed to have no merit.

What were the facts?

The Income Tax Department assessed the assessee for paying 'on-money' of Rs. 6,89,100/- to a developer based on material seized during a search. The assessee appealed this addition.

What were the issues?

Whether the addition of 'on-money' payment was substantiated by incriminating material or based on assumptions and presumptions.

Which sections of the Income-tax Act were involved?

Section 147

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: “SMC” NEW DELHI

Before: SHRI SATBEER SINGH GODARA

For Appellant: Dr. Rakesh Gupta, Adv
Hearing: 29.06.2026Pronounced: 29.06.2026

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: “SMC” NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER ITA No.3117/Del/2026 Assessment Year: 2019-20 M/s. Chawla Construction, Vs. Income Tax Officer, E-261, Amar Colony, Ward -62(1), Lajpat Nagar-IV, Delhi New Delhi – 110048 PAN: AAEFC5269P (Appellant) (Respondent)

Assessee by Dr. Rakesh Gupta, Adv. Sh. Somil Agarwal, Adv. Department by Sh. Manoj Kumar, Sr. DR Date of hearing 29.06.2026 Date of pronouncement 29.06.2026 ORDER

This assessee’s appeal for assessment year 2019-20, arises against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s DIN and order no. ITBA/NFAC/S/250/2025-26/1085999849(1), dated 13.02.2026 involving proceedings under section 147 of the Income- tax Act, 1961 (hereinafter referred to as ‘the Act’). Heard both the parties. Case file perused.

ITA No.3117/Del/2026

2.

Learned departmental representative vehemently argues in support of both the learned lower authorities’ respective assessments and lower appellate findings that the assessee/appellant herein has rightly been assessed for having paid on-money of Rs.6,89,100/- to the developer M/s. Omaxe group as per departmental authorities’ action having found/seized the corresponding incriminating material in search action on 14.03.2022. 3. I have given my thoughtful consideration to the assessee’s and the Revenue’s respective vehement submissions against and in support of the impugned addition. There is hardly any dispute between the parties that both the learned lower authorities have more gone by their respective assumptions and presumptions than having discussed any incriminating material indicating the assessee to have made the impugned on-money payment to the searched party in question. It is further emphasized that there is no indication in the assessment order or in the lower appellate discussion discussing any actual evidence against the assessee to buttress the on-money allegation. I thus find no merit in the

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ITA No.3117/Del/2026

impugned addition of Rs.6,89,100/- which is hereby deleted in very terms. 4. This assessee’s appeal is allowed. Order pronounced in the open court on 29th June, 2026 Sd/- (SATBEER SINGH GODARA) JUDICIAL MEMBER Dated: 20th July, 2026. RK/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi

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