TaxTMI 
TaxTMI 
2024 (3) TMI 1545
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....riminating material pertaining to the appellant with regards to alleged on-money paid for purchase of flat from Cosmos Group and therefore the re-opening was in absence of any independent and valid belief on the part of the Id AO that any income chargeable to tax had escaped assessment. The re-opening of assessment u/s 147 being bad-in-law, the asst. order flowing therefrom, being the order u/s 143(3) r.w.s 147 is also invalid and bad in law and hence the same may be quashed 2. The Hon CIT(A) erred in upholding the addition of Rs. 31,00,000/-, u/s 69 of the 1.1 Act, 1961, as unexplained investment towards alleged on money paid towards purchase of flat no. A-07, 7th floor, Twilight, Cosmos Horizon, Ghodbunder Road, Thane (W) to Cosm....
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....ey payments by the assessee Shri Bharat Laxman Bhiwapurkar were found. As per the details in the email account of the Cosmos Group a cash book of the on money received by the Cosmos Group from various persons towards purchase of flats/shops/offices were prepared in excel sheet. During the course of search action statement of sales head of cosmos group Ms. Karuna Khambayat was recorded on 24.09.2014 u/s 131 of the Act in her statement she stated that there was often a cash element involved in the sale of flats/shops etc. Similarly, a statement of Smt. Minal Mahesh head of accounts of Cosmos Group was recorded u/s 132(4) of the Act on 25.09.2014 and 26.09.2014 and in her statement she also accepted that on money was taken and cash transaction....
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....Cosmos Group. ii. There was no fix ratio of cash element and was dependent upon the customer profile. iii. The data pertaining to cash transactions was maintained in the excel sheets and tally, only in specific e-mail addresses only for the knowledge of few in Cosmos group." The assessing officer further stated that these evidences were sufficient to establish that assessee had given on money of Rs. 31,00,000/- for purchase of flat. Therefore, the AO has added the amount of Rs. 31,00,000/- as unexplained investment deemed to be the income of the assessee for the year under consideration. 3. The assessee filed the appeal before the ld. CIT(A). The ld. CIT(A) has dismissed the appeal of the assessee. 4. During the c....
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....igation wing in respect of search action taken place in the case of Cosmos Group engaged in the business of building and construction and the information relating to on money payment received. The assessing officer stated that for purchasing flat no. A/07 at Harizon Twilte, the assessee had made cash payment of Rs. 31,00,000/- over and above the agreement value of the flat. After referring material placed on record the assessee submitted that AO has merely relied upon the statement recorded u/s 132(4) of the Act key persons of the Cosmos Group without bringing on record any incriminating material seized during search action to establish that assesse had paid alleged on money. After perusal of the material on record it is also noticed that a....
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....nst Mr. Suraj Parmar of Cosmos Group and not against the assessee without any corroboration. Excel sheet alleged to have been recovered from the office of builders is also not admissible being not proved under section 65 of the Evidence Act. So in view of the matter, addition made by the AO and sustained by the Ld. CIT(A) is not sustainable in the eyes of law, hence ordered to be deleted. Consequently, appeal filed by the assessee is allowed." The ld. Counsel has also referred the similar kind of addition made on the basis of search action in the case of Cosmos Group in the case of Monika Anand Gupta Vs. ITO, Ward 1(2) vide ITA No. 5561/Mum/2018 which was adjudicated by the ITAT, Mumbai dated 21.04.2022 wherein held as under: "6....