DCIT CC-8(4), MUMBAI, MUMBAI vs. SUDIPTA AJOYKUMAR MUKHERJEE, MUMBAI

Ms. Veena Agrawal, A/R Assessee by : Revenue by : Shri Satyaprakash R. Singh, CIT D/R सुनवाई की तारीख/Date of Hearing : 10/09/2025 घोषणा की तारीख /Date of Pronouncement : 12/09/2025 आदेश/O R D E R

PER NARENDRA KUMAR BILLAIYA, AM:

by the assessee challenging the validity of proceedings under section 153C, despite the presence of incriminating material pertaining to the assessee found during a search on a third party, which satisfied the legal requirements for assumption of jurisdiction under section 153C?

3. Whether the Hon'ble CITA) was justified in law in holding that the absence of the assessee's signature on the seized document and lack of direct evidence of cash payment rendered the document inadmissible, ignoring the principle that once a document pertains to the assessee and is recovered during a lawful search, the onus 2 lies on the assessee to rebut the statutory presumption under section 292C of the Income-tax Act, 1961?

4. The appellant craves leave to add to, alter, amend, modify and /or delete any or all of the above said grounds of appeal the appellant reserves its right to file further submissions in the appeal.”

3. Briefly stated, the facts of the case are that a search and seizure action u/s 132 of the Act was conducted by the DDIT, Inv. Unit 6(1), Mumbai in the case of Mohini Group and related entities on 07/05/2018. The flagship company of the Group is Mohini Shelthors Private Limited, which is primarily engaged in developing real estate. During the course of the search and seizure operation, several incriminating documents were found and seized. One such evidence unearthed during the course of search action was an excel-sheet titled Ashirwad Co-operative Housing Society Ltd., dated 22/03/2018. In the said excel-sheet, the name of the assessee was found appearing saying that she has made cash payment of Rs. 80,00,000/- towards allotment of a flat in Ashirwad Co- operative Housing Society Ltd.. The assessee was issued a showcause notice asking her to showcause why the cash payment of Rs. 80,00,000/- should not be treated as unexplained investment and added back to the total income for the year under consideration. In her reply, the assessee stated that she received a letter dated 19/06/2017 by which she was allotted one 2BHK flat costing Rs. 51.20 Lakhs as per the decision in the special general meeting of the Society and requested the assessee to deposit Rs. 15,16,800/- being 25% of the initial payment of allotment of residential flat for the confirmation of the allotment. The assessee intimated the society that she is in the process of availing loan of Rs. 30,00,000/-. However, subsequently the assessee resigned from the member-ship of the society due to delay in granting permission for 3 raising housing loan and never made any payment in cash or cheque to the said Society. Basis the noting in the excel-sheet, the AO formed a belief that the assessee has made payment of Rs. 80,00,000/- in cash for which she has not explanation and went on to make addition of Rs. 80,00,000/- u/s 69 of the Act completed the assessment at an income of Rs. 98,32,350/-. 3.1. The assessee strongly agitated the matter before the ld. CIT(A) and reiterated that no payment was made by the assessee the assessee has subsequently cancelled the member-ship in the Society and the flat was never allotted to the assessee. Considering the submissions, the ld. CIT(A) was convinced that the assessee has not paid any amount as per letter dated 19/06/2017 and has resigned from the membership of the Society. The ld. CIT(A) was also convinced that there is not question of allotment of flat and payment for the same and deleted the impugned addition of Rs. 80,00,000/-.