Receipt of ‘On-Money’ Received from Sale of Flats cannot be Taxed: ITAT deletes Addition

The Income Tax Appellate Tribunal (ITAT) deleted an addition made by the tax authorities regarding on-money received from the sale of flats. The ITAT ruled that the receipt of on-money, which is money received in excess of the registered sale price of property, cannot be taxed if there is no evidence to substantiate the claim. In this case, the authorities had added the on-money to the income of the assessee based on assumptions. However, the ITAT emphasized the need for concrete evidence before making such additions, thereby providing relief to the assessee.