UTPALKUMAR DEVENDRAKUMAR THAKOR,VAPI vs. DCIT, VAPI CIRCLE, VAPI

The assesee filed return of income at Rs. 39,58,637/- from salary and Rs. 18143/- from other sources. The Assessing Officer found that the assessee has given cash of Rs. 10,50,000/- for booking of his flat. The A.O. after taking cognizance of the reply of the assessee made addition of Rs. 5,25,000/- as on money payment u/s. 69 of the Act. The ld. A.R. submitted that the assessee has given the details along with ownership of the said flat along with his wife was purchased jointly of the consideration of Rs.60,00,000/-. The assessee has given details from the HDFC

The ld. D.R. relied upon the assessment order and the order of the CIT(A).

We have heard both the parties and perused the material available on record. It is pertinent to note that that the assessee is a salaried and does not maintain regular books of accounts. In fact, the assessee has given details of withdrawals at page 7 of the paper book along with corresponding bank statement. The said fact was totally ignored by the A.O. as well as by the CIT(A). The contention of the assessee was that the cash payment as related to on money was also from accounted sources which stands verified from the bank account. Hence we hold that no addition is called for on account of on money.

In the result, the appeal of the assessee is allowed.