Registered sale deed governs consideration and capital gains follow the property owner, while unexplained cash deposits were sustained.

A registered sale deed was treated as conclusive evidence of the stated consideration unless rebutted by reliable material, so the explained portion of the cash deposit was accepted while the balance was upheld as unexplained for want of proof of a higher real consideration. Capital gains were required to be assessed in the hands of the property owner, and not in the hands of the assessee merely because sale proceeds were credited to his bank account. On the facts, the addition for unexplained cash deposit was sustained, while the capital gains addition was deleted, giving the assessee partial relief.

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Issues: (i) whether the balance cash deposit of Rs. 12.90 lakhs in the assessee's bank account could be treated as unexplained where only Rs. 20.23 lakhs stood evidenced by the registered sale deed of his wife's property; (ii) whether the short-term capital gains arising from the sale of the wife's property could be assessed in the hands of the assessee instead of in the hands of the wife, the owner of the property.

Issue (i): whether the balance cash deposit of Rs. 12.90 lakhs in the assessee's bank account could be treated as unexplained where only Rs. 20.23 lakhs stood evidenced by the registered sale deed of his wife's property.

Analysis: The cash deposits in the assessee's savings bank account had to be explained by tangible evidence. The registered sale deed showed consideration of Rs. 20,23,500, and that amount was correctly accepted as explained. For the remaining Rs. 12.90 lakhs, no reliable evidence was produced to show that the actual consideration was Rs. 32 lakhs. The registered document was treated as conclusive for the stated consideration, and oral assertion of a higher amount could not override it.

Conclusion: The addition of Rs. 12,90,000 as unexplained cash deposit was upheld and the issue was decided against the assessee.

Issue (ii): whether the short-term capital gains arising from the sale of the wife's property could be assessed in the hands of the assessee instead of in the hands of the wife, the owner of the property.

Analysis: The purchase and sale documents established that the property belonged to the assessee's wife and was sold by her. No material was shown to support beneficial ownership in the assessee or to justify assessment of the capital gains in his hands. Tax incidence on capital gains follows the owner of the property and not a person in whose bank account sale proceeds are deposited.

Conclusion: The enhancement made by taxing the short-term capital gains in the assessee's hands was deleted and the issue was decided in favour of the assessee.

Final Conclusion: The appeal succeeded only to the extent of deleting the capital gains addition, while the addition for unexplained cash deposits was sustained, resulting in partial relief to the assessee.

Ratio Decidendi: A registered sale deed is conclusive evidence of the stated consideration unless rebutted by reliable material, and capital gains must be assessed in the hands of the property owner absent proof of beneficial ownership in another person.

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