ORDER

PER BENCH:

The present appeal is filed by assessee against the order dated 28.11.2025 passed by Ld. Commissioner of Income Tax (A)-3, Noida [“Ld. CIT(A)”] u/s 250 of the Income Tax Act, 1961 [“the Act”] arising out of assessment order dated 22.03.2024 passed u/s 147 of the Act pertaining to Assessment Year 2019-20.

Brief facts of the case are that based on the documents found during the course of search carried out in the case of Shri Krishna Sharma and Smt. Sheetal Sharma on 02.02.2022, case of the assessee was re-opened u/s 147 of the Act, since as per seized documents titled as page 6 & 7 of Annexure A-2, it is found that assessee has purchased a property for a total consideration of INR 47.00 lacs and payments of INR 32.00 lacs was made through cheque and INR 15.00 lacs was paid in cash. Accordingly, AO passed the reassessment order dated 06.03.2024 u/s 147 by making addition of INR 15.00 lacs being cash payment as undisclosed investment u/s 69B r.w.s. 115BB of the Act and the total income was assessed at INR 20,88,840/-.

Against the said order, assessee filed appeal before Ld. CIT(A) who vide impugned order dated 28.11.2025, dismissed the appeal of the assessee.

Aggrieved by the order of Ld. CIT(A), the assessee is in appeal before the Tribunal.

Before us, assessee has taken as many as 10 grounds of appeal however, the only effective Ground of appeal is No. 5 wherein the assessee has challenged the action of ld. CIT(A) in confirming the addition of INR 15 Lakhs.

Heard the contentions of both the parties at length and perused the material available on record. It is observed that the addition is made based on the entry found noted in the loose paper No. 7 & 8, Annexure A-2 found and seized from the possession of Shri Krishna Sharma and Smt. Sheetal Sharma. As per the documents, assessee has purchased a property for INR 47.00 Lacs and paid INR 32.00 lacs through banking channel. In the said paper, a sum of INR 15.00 lacs is written in the last Column. However, nowhere in the assessment order, it is observed by AO that this amount of INR 15.00 lacs was paid by the assessee as cash nor any statement of any persons confirming that these facts were brought on record/ recorded by making independent enquiries/investigation by the AO.

The Co-ordinate Bench of the Tribunal in the case of Shri Gaurav Gupta in ITA No.31/DDN/2025 has deleted the additions made by placing reliance on the same documents by making following observations:-

5. “The Ld. Counsel for the Assessee addressing on Ground No. 3 and Ground No. 5 submitted that the authorities below committed error in making/sustaining the addition amounting to Rs. 19,00,000/- u/s 69B of the Act relying on the loose sheet of paper which is nothing but ‘dumb document’. Further submitted that there is no mentioning of ‘cash’ payment and the alleged incriminating material being a ‘dumb document’ which was not corroborated with any of the statement or evidence. Further submitted that though the loose paper was not found from the possession of the Assessee, the Revenue has not provided opportunity for cross-examination. Therefore, submitted that the addition made by the A.O. which has been upheld by the Ld. CIT(A) is liable to be deleted.”

It is further observed that addition on identical facts on the basis of entry in the same document was also made in the case of Bhagwani Devi vs DCIT where the Co-ordinate Bench of Dehradun Tribunal in ITA No.31/DDN/2025 vide order dated 22.08.2025 has deleted the addition by making following observations in para 8 to 10 of the order:

8. “From the plain reading of the above seized document it was found that there is no mentioning of the word ‘cash’. Admittedly the documents, have been seized from the third party, however, the Assessee has not been provided with opportunity of cross examination. The Assessee has specifically raised a Ground before the Ld. CIT(A) regarding violation of principals of natural justice