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Facts
The Assessing Officer made an addition of Rs. 5,25,000/- as on-money payment for a flat booking, considering cash given by the assessee. The assessee argued that the cash payment was from accounted sources verified through bank statements and that the flat was jointly purchased with his wife for Rs. 60,00,000/-.
Held
The Tribunal found that the assessee, being a salaried individual without regular books of accounts, had provided details of withdrawals and bank statements which were ignored by the lower authorities. It was held that the cash payment for on-money was from accounted sources, verified from the bank account.
Key Issues
Whether the addition on account of alleged on-money payment for flat booking is justified when the assessee has provided bank statements and details of accounted sources for the cash payment.
Sections Cited
69
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Income Tax Appellate Tribunal, SURAT “SMC” BENCH, SURAT
Before: DR. B.R.R. KUMAR, VICE- & MS. SUCHITRA KAMBLE
O R D E R PER SUCHITRA KAMBLE, JUDICIAL MEMBER:-
This is an appeal filed against the order dated 22-08-2024 passed by National Faceless Appeal Centre (NFAC), Delhi for assessment year 2013-14.
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.