Section 69B addition deleted where assessee's explanation on vacant, ill-reputed residential property was found plausible.

The Tribunal's deletion of an addition under Section 69B was sustained because the Revenue's comparable sales were of commercial properties, while the property in question was a residential flat. The assessee's explanation that the flat had remained vacant for a long period, had an ill-reputed condition, and was subject to a municipal notice for illegal possession was accepted as plausible, with the sale agreement also on record. The reasoning proceeded on the basis that the initial burden rested on the Revenue and that the explanation had to be assessed objectively. On that appraisal, the addition was deleted.

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Issues: Whether the Tribunal was justified in deleting the addition made under Section 69B of the Income-tax Act, 1961 on the basis of the assessee's explanation and the surrounding material.

Analysis: The comparable sales relied upon were of commercial properties, whereas the property in question was a residential flat. The Tribunal accepted the assessee's explanation regarding the property being vacant for a long period and being ill-reputed, including the circumstance of a municipal notice for illegal possession. The sale agreement was also on record. The finding proceeded on the basis that the initial burden lay on the Revenue and that the assessee's explanation had to be considered objectively. On that appraisal, the Tribunal treated the explanation as plausible and reached a reasonable conclusion.

Conclusion: The deletion of the addition under Section 69B was upheld and the Revenue's challenge failed.

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