It has been held by the Hon’ble Appellate Tribunal that the developer admitted during the course of survey that it has received on-money from various persons, which was kept outside the books of account. The name of the assessee specifically appeared in such a list. It was not only a mere admission by the developer, but corresponding record in this regard was also found, which duly recorded the name of the assessee with the amount of on-money. Thus, it is proved that the assessee has paid on-money to the developer for purchase of land and therefore, the lower authorities are justified in making the addition. (AY .2011-12)
Anoop Gopikishan Jaju v. Asst. CIT (2023) 105 ITR 22 (SN) (Pune) (Trib)
S. 69 : Unexplained investments-Cash paid to the developer for purchase of land-during the course of survey action developer accepted the receipt of on money and details of the same was provided-in the absence of providing the source, the AO is justified in treating the payment as income from undisclosed sources.