| Question And Answer | |
|---|---|
| Subject: | ADDITION U/S 69 ALLEGATION FOR CASH PAYMENT TO BUILDER |
| Category: | Income-Tax |
| Querist: | CA NEERAJ BUDHIRAJA |
| Answered by: | Law Intern |
| Tags: | section 69 |
| Date: | April 19, 2026 |
Dear Sir
AO has made addition u/s 69 of the I T Act for cash payment to builder based on material collected from the premises of the builder despite the fact assessee denied any such payment in cash also the builder has given in writing to the assessee confirming that no payment has been received in any mode other than two transactions showing in the letter which were made through Bank. Can you provide us the list of cases which were decided in favour of assessee.
It is well settled that ab addition u/s 69 cannot be made solely on the basis of a “dumb” document. Corroboration in the form of cash or undeclared property is required.
In Nirmala Pennechand Sarda v. ITO (ITAT Mumbai), the ITAT held that additions based solely on vague, third-party “rough loose papers” seized during a search, without any corroborative evidence or independent investigation by the Assessing Officer (AO), are not sustainable. Other judgements are referred to in this.