Appeal Dismissed for Alleged On-Money Payment in Plot Sale

The ITAT upheld the ld. CIT(A)'s decision to dismiss the appeal filed by the assessee regarding the taxing of alleged on-money payment received on the sale of plots. The appellant failed to provide evidence to rebut the assessment, which was based on information from search and seizure operations. The appellant's non-compliance with statutory notices and lack of reliable evidence led to the affirmation of the assessment order for the assessment year 2008-09, including short term capital gains and on-money receipt.

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Issues:
Taxing alleged receipt of on-money payment based on search and seizure operations.

Analysis:
The appeal was against the assessment order for the assessment year 2008-09. The appellant, an individual, did not file a return of income despite receiving a notice u/s 148. The Assessing Officer completed the assessment to best judgment based on information that the appellant received on-money payment on sale of plots. The assessment included short term capital gains and on-money receipt. The appellant contended before the ld. CIT(A) that no evidence of on-money receipt existed, but the appeal was dismissed. The appellant challenged this decision before the ITAT.

The appellant argued that the addition was based on surmises and third party statements without offering cross-examination. Additionally, the property sold was jointly held by 5 persons, and the entire on-money consideration should not be taxed in the appellant's hands. The Revenue supported the lower authorities' orders, stating the appellant did not avail opportunities to respond to notices or rebut evidence.

The ITAT found that the issue revolved around taxing the alleged on-money payment based on information from search and seizure operations. The appellant failed to comply with statutory notices and did not provide any reasons for non-compliance. The Assessing Officer's ex-parte assessment was deemed justified. The ld. CIT(A) extensively discussed the case details, which the appellant did not rebut during the ITAT hearing. The evidence and statements were provided to the appellant, who failed to present reliable evidence to challenge the assessment. Consequently, the ITAT upheld the ld. CIT(A)'s decision, dismissing the appeal.

In conclusion, the ITAT dismissed the appeal filed by the assessee, upholding the order of the ld. CIT(A) regarding the taxing of the alleged on-money payment.

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