BHAGAWATI M JAIN,DOMBIVALI vs. WARD 3(1), KALYAN

ITA 2408/MUM/2025Status: DisposedITAT Mumbai10 March 2026AY 2018-2019Bench: SHRI PAWAN SINGH (Judicial Member), SHRI GIRISH AGRAWAL (Accountant Member)1 pages
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What did the Tribunal hold?

The Tribunal held that the addition made solely on third-party information without corroborative evidence and denying cross-examination violates the principles of natural justice. The burden is on the revenue to prove the undisclosed investment.

What were the facts?

The assessee purchased a shop and was alleged to have paid Rs. 21,99,000/- as on-money in cash. This allegation was based on information from a search and seizure operation on the builder and a statement from the builder's partner, without providing the assessee an opportunity for cross-examination.

What were the issues?

Whether the addition made on the basis of third-party information without cross-examination is valid, and whether the revenue has discharged its burden to prove undisclosed investment.

Which sections of the Income-tax Act were involved?

Section 147,Section 144B,Section 148A,Section 148,Section 153C,Section 151,Section 69B,Section 132,Section 139(1),Section 132(4)

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Income Tax Appellate Tribunal, “J” BENCH MUMBAI

Before: SHRI PAWAN SINGH & SHRI GIRISH AGRAWAL

Hearing: 22.12.2025Pronounced: 10.03.2026

PER GIRISH AGRAWAL, ACCOUNTANT MEMBER:

This appeal filed by the assessee is against the order of National Faceless Appeal Centre (NFAC), Delhi, vide order no. ITBA/NFAC/S/250/2024-25/1073449956(1), dated 19.02.2025, passed against the assessment order by Assessing Officer, National Faceless Assessment Centre, Delhi, u/s. 147 r.w.s.144B of the Income- tax Act (hereinafter referred to as the “Act”), dated 26.02.2024, for Assessment Year 2018-19. 2. Grounds taken by assessee are reproduced as under:

2 Bhagawati M Jain AY 2018-19

“1. On the given facts, circumstances and judicial pronouncements, CIT (Appeals) has erred in confirm

The order continues below.

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