Summary
- The ITAT Delhi has ruled that cash received as "on-money" from property sales must be taxed as capital gains, not as unexplained money under Section 69A.
- In the case of Sandeep Kapoor and Amarjeet Singh Kapoor, the Tribunal determined that the source of the on-money was established, allowing it to be included in the sale consideration for tax purposes.
- The appeals involved properties sold at significant differentials between registered sale deeds and actual agreements, with amounts of INR 16,75,000 and INR 36,66,666 being contested.
- This decision could set a precedent for how on-money is treated in future property transactions and tax assessments across India.
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