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2018 (3) TMI 1908 - AT - Income TaxAddition u/s 69 - addition towards on money payment only on the basis of the investigation conducted by the CBI in the case of EHTPL and reference received from the DCIT, Circle 2(3), Hyderabad - HELD THAT:- In this case, AO has not established on the basis of evidence gathered that the assessee has paid on money to the extent quantified by him. In fact, the Department has no piece of evidence against the assessee directly link the assessee towards payment of on money. Yet, merely on the basis of the fact that some other buyers have accepted payment of on-money, the Assessing Officer cannot made addition under section 69 of the Act. Mere acceptance of addition made in the assessment on undisclosed cash deposits in Standard Charted Bank and undisclosed payments on credit card bills issued by the Union Bank of India, cannot be a ground that the assessee has made huge on money warranting addition under section 69 of the Act. The concept of preponderance of probability cannot be applied in this case because, in ground reality, the Department failed to make any enquiry in terms of provisions of section 133 of the Act with Shri Konnaru Rajendra Prasad, Shri T. Ranga Rao, Directors of M/s. Stylish Homes Real Estate (P) Ltd. and recorded their statement of having collected excess amount from the assessee over and above the cost of plot at ₹.5000/-per sq. yard; there was no material evidence to show that the assessee had enough source to make huge undisclosed investments, where, in this case, the source of income of the assessee was only income from salary and no other source of income was detected; or there was any search or survey in the case of the assessee or the plot seller and acquired any piece of evidence of having paid on-money by the assessee. Each case has to be decided according to the facts and based on the material evidence contemplated against the assessee. Revenue has failed to discharge its duties; no piece of evidence against the assessee having paid on money was brought on record and instead, made up a case on surmise and conjectures which cannot be allowed - We set aside the order of the ld. CIT(A) and direct the Assessing Officer to delete the addition made under section 69 of the Act.- Decided in favour of assessee.
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