{"id":59147,"date":"2026-03-27T15:51:10","date_gmt":"2026-03-27T10:21:10","guid":{"rendered":"https:\/\/itatonline.org\/digest\/?post_type=qa&#038;p=59147"},"modified":"2026-03-27T15:51:51","modified_gmt":"2026-03-27T10:21:51","slug":"addition-u-s-69a-based-solely-on-builders-seized-data-on-money-sustainable","status":"publish","type":"qa","link":"https:\/\/itatonline.org\/digest\/qa\/addition-u-s-69a-based-solely-on-builders-seized-data-on-money-sustainable\/","title":{"rendered":"Addition u\/s 69A based solely on builder\u2019s seized data (on-money) \u2013 sustainable?"},"content":{"rendered":"<p data-start=\"205\" data-end=\"223\">Respected Members,<\/p>\n<p data-start=\"225\" data-end=\"353\">I seek guidance on the sustainability of an addition made under <strong data-start=\"289\" data-end=\"318\">Section 69A r.w.s. 115BBE<\/strong> in a real estate transaction case.<\/p>\n<p data-start=\"355\" data-end=\"371\"><strong data-start=\"355\" data-end=\"371\">Brief facts:<\/strong><\/p>\n<ul data-start=\"372\" data-end=\"817\">\n<li data-section-id=\"b80j06\" data-start=\"372\" data-end=\"471\">A property was purchased from a builder, and <strong data-start=\"419\" data-end=\"470\">all payments were made through banking channels<\/strong>.<\/li>\n<li data-section-id=\"1ws0s5y\" data-start=\"472\" data-end=\"530\">A <strong data-start=\"476\" data-end=\"494\">search u\/s 132<\/strong> was conducted on the builder group.<\/li>\n<li data-section-id=\"j9qd0b\" data-start=\"531\" data-end=\"663\">During post-search investigation, <strong data-start=\"567\" data-end=\"607\">seized Tally data \/ internal records<\/strong> allegedly showed certain buyers having paid \u201con-money\u201d.<\/li>\n<li data-section-id=\"1yu62ch\" data-start=\"664\" data-end=\"739\">The assessee\u2019s name appears in such data against an alleged cash payment.<\/li>\n<li data-section-id=\"1hvu5qo\" data-start=\"740\" data-end=\"817\">Based solely on this third-party data, the AO has made an addition u\/s 69A.<\/li>\n<\/ul>\n<p data-start=\"819\" data-end=\"834\"><strong data-start=\"819\" data-end=\"834\">Key issues:<\/strong><\/p>\n<ul data-start=\"835\" data-end=\"1270\">\n<li data-section-id=\"b73yp2\" data-start=\"835\" data-end=\"877\">No <strong data-start=\"840\" data-end=\"858\">cash was found<\/strong> from the assessee.<\/li>\n<li data-section-id=\"4sdc1g\" data-start=\"878\" data-end=\"949\">No <strong data-start=\"883\" data-end=\"909\">statement or admission<\/strong> by the assessee regarding cash payment.<\/li>\n<li data-section-id=\"5ddmg3\" data-start=\"950\" data-end=\"1040\">No <strong data-start=\"955\" data-end=\"993\">independent corroborative evidence<\/strong> (such as receipts, agreements, or cash trail).<\/li>\n<li data-section-id=\"vq07zr\" data-start=\"1041\" data-end=\"1119\">The assessee was <strong data-start=\"1060\" data-end=\"1106\">not provided copies of the seized material<\/strong> relied upon.<\/li>\n<li data-section-id=\"1hwb89a\" data-start=\"1120\" data-end=\"1204\"><strong data-start=\"1122\" data-end=\"1203\">Cross-examination of the builder \/ concerned persons was requested but denied<\/strong>.<\/li>\n<li data-section-id=\"19x5ni4\" data-start=\"1205\" data-end=\"1270\">The addition is based purely on <strong data-start=\"1239\" data-end=\"1269\">third-party seized records<\/strong>.<\/li>\n<\/ul>\n<p data-start=\"1272\" data-end=\"1284\"><strong data-start=\"1272\" data-end=\"1284\">Queries:<\/strong><\/p>\n<ol data-start=\"1285\" data-end=\"1745\">\n<li data-section-id=\"nuyxld\" data-start=\"1285\" data-end=\"1425\">Whether such an addition u\/s 69A can be sustained <strong data-start=\"1338\" data-end=\"1388\">solely on the basis of third-party seized data<\/strong>, without any corroborative evidence?<\/li>\n<li data-section-id=\"1btczud\" data-start=\"1426\" data-end=\"1522\">Whether <strong data-start=\"1437\" data-end=\"1468\">denial of cross-examination<\/strong> in such cases violates principles of natural justice?<\/li>\n<li data-section-id=\"lnirw8\" data-start=\"1523\" data-end=\"1680\">Are there any <strong data-start=\"1540\" data-end=\"1576\">recent ITAT \/ High Court rulings<\/strong> where similar additions (based on builder \u201con-money\u201d data) have been <strong data-start=\"1646\" data-end=\"1679\">deleted in the case of buyers<\/strong>?<\/li>\n<li data-section-id=\"yjwm5u\" data-start=\"1681\" data-end=\"1745\">Any guidance on <strong data-start=\"1700\" data-end=\"1725\">strong appeal grounds<\/strong> in such situations?<\/li>\n<\/ol>\n<p data-start=\"1747\" data-end=\"1998\">I came across a recent ITAT ruling (Ahmedabad) reported in media where relief was granted in a similar \u201con-money\u201d case due to lack of direct evidence. Request members to kindly share <strong data-start=\"1930\" data-end=\"1966\">relevant judgments or precedents<\/strong> supporting the assessee\u2019s case.<\/p>\n<p data-start=\"2000\" data-end=\"2036\">Thanks in advance for your insights.<\/p>\n","protected":false},"comment_status":"open","ping_status":"closed","template":"","qa_expert":[1275],"qa_category":[23],"qa_tag":[39,354],"class_list":["post-59147","qa","type-qa","status-publish","hentry","qa_expert-law-intern","qa_category-income-tax","qa_tag-natural-justice","qa_tag-undisclosed-income"],"acf":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa\/59147","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/qa"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=59147"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=59147"}],"wp:term":[{"taxonomy":"qa_expert","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_expert?post=59147"},{"taxonomy":"qa_category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_category?post=59147"},{"taxonomy":"qa_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_tag?post=59147"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}