Tribunal Orders Fresh Review of Property Transaction Additions, Deletes Bookies Payment Addition for Lack of Evidence.

The Tribunal partially allowed the appeal, setting aside the additions of Rs. 24,03,000 and Rs. 7,00,000 related to property transactions for fresh adjudication, citing insufficient evidence and the need for further investigation. Additionally, the Tribunal deleted the Rs. 9,65,000 addition concerning payments from bookies, due to lack of incriminating evidence and breach of natural justice.

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Issues Involved:
1. Sustenance of addition of Rs. 24,03,000 and Rs. 7,00,000 on account of purchase and sale of properties.
2. Sustenance of addition of Rs. 9,65,000 on account of payments received from bookies.

Summary:

Issue 1: Sustenance of Addition of Rs. 24,03,000 and Rs. 7,00,000 on Account of Purchase and Sale of Properties

The assessee, a prominent cricketer, was subjected to a search action u/s 132(1) of the IT Act at his residence, leading to the discovery of a document marked as Annex. A3, which contained a commission account. The AO inferred that the sale consideration of properties purchased by the assessee was higher than shown in the sale deeds, based on statements from Shri Parvesh Kochhar, who admitted to preparing the commission account. The AO made additions of Rs. 24,03,000 and Rs. 7,00,000 for various assessment years based on this inference.

The assessee challenged these additions before the CIT(A), who upheld the AO's decision. The assessee's counsel argued that the document did not pertain to the assessee, Shri Kochhar was not a legitimate property dealer, and no actual payment was made based on the document. They also contended that the AO did not examine the purchasers/sellers or obtain a valuation report.

The Tribunal found that the addition was made solely on the basis of figures noted on a slip of paper and the statement of Shri Kochhar, without direct evidence of passing consideration beyond the sale deeds. The Tribunal set aside the matter to the AO for fresh adjudication, emphasizing the need for proper investigation, including examination of buyers and sellers and consideration of the valuation report.

Issue 2: Sustenance of Addition of Rs. 9,65,000 on Account of Payments Received from Bookies

The AO made an addition of Rs. 9,65,000 based on details in the assessment order and the statement of Mr. Mukesh Gupta, who alleged payments to the assessee for introducing international players. The CIT(A) upheld this addition, referencing the CBI report.

The assessee's counsel argued that the addition was not based on any evidence found during the search and that the assessee was not confronted with the statement of Mr. Gupta. The Tribunal agreed, noting that no incriminating documents were found during the search to establish a link between bookies and players. The addition was based on an unsubstantiated statement without providing the assessee an opportunity to rebut, violating natural justice principles. Consequently, the Tribunal deleted the addition of Rs. 9,65,000.

Conclusion:

The Tribunal allowed the assessee's appeal partly for statistical purposes, setting aside the matter regarding property transactions for fresh adjudication and deleting the addition related to payments from bookies.

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