The assessee has been a dormant firm since 2003 and received a reassessment notice u\/s 147 r\/w 148 based on information that a partner of the firm received large cash payments for the sale of Transferable Development Rights (TDR) by another entity. The AO alleged that the assessee was used to route these unaccounted funds. However, the ITAT observed that the seized materials, including a ledger account and the third-party statement, failed to establish a connection to the assessee. The AO did not conduct any independent inquiry or find corroborative evidence to support the claim that this dormant firm was used to route cash for a TDR transaction owned and executed by a separate joint venture. Thus, the\u00a0 additions were deleted by the ITAT on the grounds that they were based on speculation and assumptions, rather than concrete evidence that could establish the assessee\u2019s involvement in the transactions. (I.T.A. No.5376\/Mum\/2024 dt. 23- 05 -2025) (AY. 2009-10)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 153A: Assessment \u2013 Search \u2013 Alleged transfer of Development rights – Reassessment based on seized ledger account and third-party statement \u2013 No independent inquiry conducted by the AO \u2013 No evidence to link the assessee to the transaction \u2013 Addition is deleted . [S. 131, 147, 148, 153A, 153C]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-55002","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-ej8","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/55002","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=55002"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/55002\/revisions"}],"predecessor-version":[{"id":55003,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/55002\/revisions\/55003"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=55002"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=55002"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=55002"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}