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2022 (9) TMI 1087 - AT - Income TaxUndisclosed income - receipt of on-money by cash - cash received for the sale of property - case of the purchaser is that payment was made through an office staff of her husband and paid to a staff of the assessee just before registration - HELD THAT:- Assessing Officer was not able to establish that the assessee received the on-money payment except statement given by Mrs. Pramila and her son and moreover, there was no documentary evidence to prove that the assessee has received on-money. It is a clear evidence that the assessee has received the sale consideration what is mentioned in the sale deed. If at all the assessee has received other than the sale consideration, the Assessing Officer has to show necessary documentary evidence. In this case, no documentary evidence was brought on record by the Assessing Officer. Apart from that, the payment was neither directly paid by the purchaser nor received by the assessee. The on-money payment is stated to have made through servant of the purchaser and also received by the servant of the assessee. AO ignoring to examine relevant persons, who are material evidence in this case, proceeded to make addition in the hands of the assessee. The only documentary evidence available with the AO is that after conducting search, the purchaser has accepted in her sworn statement in respect of on-money payment. AO has made addition in the hands of the purchaser Smt. Pramila. Simply because the purchaser has admitted on-money payment is not sufficient. Particularly, in this case, a search was conducted and no incriminating material has been found in respect of on-money receipt. Therefore addition cannot be made in the hands of the assessee. In view of the above, we set aside the order of the ld. CIT(A) on this issue and the ground raised by the assessee is allowed. Disallowance of selling expenses - assessee has contended that amount was paid as a comprise amount as compensation for seeking them to release the assessee from an existing contract and that the original documents filed alone are to be considered and that the transactions are all in tandem to the terms of the contract - HELD THAT:- CIT(A) has observed that the whole sequence of events attendant with the inconsistencies/ defects pointed out by the Assessing Officer in the assessee’s claim indicates whereby, the assessee has made an untenable claim under the guise of compensation to be paid to a related party. Under the above facts and circumstances, we find no reason to interfere with the order passed by the ld. CIT(A) and accordingly, the ground raised by the assessee is dismissed.
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