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

Last updated: 05 August 2026
Quick Summary
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)

BEST VALUE
2 Years PLAN
3499
(Excl. of GST ₹629)

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Mita Basak
Published in Income Tax
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