ITAT Deletes Additions Against Jaya Bachchan Over Alleged Noida Property Cash Receipt:

The dispute arose from an alleged transaction concerning Plot No. B-130, Sector 44, Noida. A search conducted under Section 132 on 15 January 2021 in the case of Bloomstrende Buildwell Pvt. Ltd. and others led to the discovery of an agreement to sell concerning the property dated 25 November 2019 which recorded a sale consideration of Rs 4.50 crore and stated that Rs 1 crore had been received by cheque, with the balance Rs 3.50 crore payable by 30 November 2019.

However, the assessee disputed the agreement. She had not personally signed it, the purchaser's execution space was blank and the signature attributed to her representative was also disputed. The AO nevertheless made an addition of Rs 11 lakh under Section 69A for A.Y. 2019-20, treating the cheque receipt as unexplained money. For A.Y. 2020-21, the AO further treated Rs 3.83 crore as cash consideration alleged to be received by the assessee and added the same under Section 69A. The additions were upheld by the CIT(A).

Before the Tribunal, the assessee argued that the alleged agreement did not establish a concluded sale or receipt of the consideration mentioned therein. It was argued that the purchaser had acknowledged only the Rs 11 lakh cheque payment and had denied any cash payment. The assessee also relied upon the subsequent registered sale of the property to Smt. Varsha Singh in April 2023.

One WhatsApp message dated 28 October 2020 was interpreted by the AO as reflecting Rs 3.83 crore in cash and Rs 11 lakh by cheque. However, the Tribunal noted that the message was subsequent to the end of the relevant previous year for A.Y. 2020-21. The Tribunal further noted that Shri Chauhan's account was itself inconsistent with the agreement and other evidence. 

With respect to A.Y. 2019-20, the Tribunal held that the ₹11 lakh addition could not be sustained under Section 69A. As regards A.Y. 2020-21, the Tribunal held that the evidence did not establish with sufficient reliability that the assessee had actually received or owned Rs 3.83 crore in cash during the relevant previous year.

The Tribunal concluded that the source and nature of the Rs 11 lakh cheque credit were established and, therefore, it could not be treated as unexplained money under Section 69A. In respect of the alleged Rs 3.83 crore cash receipt, the Tribunal held that the evidence did not reliably establish that the assessee received or owned the amount during FY 2019-20. Accordingly, the Tribunal deleted the Rs 11 lakh addition for A.Y. 2019-20 and the Rs 3.83 crore addition for A.Y. 2020-21.