ITAT Deletes Addition for Alleged On-Money Payment Due to Lack of Evidence Against Buyer

Last updated: 05 August 2026

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The Income Tax Appellate Tribunal (ITAT) has ruled in favour of an assessee, deleting an addition of Rs 7.24 lakh made on account of alleged on-money payment for a property. The addition was based on material seized from a builder and a statement from their promoter, but the ITAT found no independent evidence linking the assessee to the alleged cash payment. The Tribunal emphasised that suspicion alone is insufficient and that the tax department must provide concrete proof of the assessee's involvement.

Court :
MUMBAI

Brief :
The Income Tax Appellate Tribunal (ITAT), Mumbai Bench, has deleted an addition of Rs. 7.24 lakh made against a property purchaser towards an alleged cash or “on-money” payment, holding that the addition was based solely on material found during a search conducted on the builder and was not supported by independent evidence against the assessee.

Citation :
ITA 555/MUM/2026

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1 Year PLAN

1999

(Excl. of GST ₹359)

2 Years PLAN

3499

(Excl. of GST ₹629)

BEST VALUE

3 Years PLAN

4999

(Excl. of GST ₹899)

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Attached File : 459474_6069_ita_555mum2026.pdf

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Judgement posted by

Mita Basak

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I write informative articles on taxation, GST, TDS/TCS compliance, corporate laws, EPF, government schemes, and finance-related topics. My focus is on simplifying complex legal, tax, and compliance matters into practical and easy-to-understand guides for professionals, businesses, and general readers.

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