Stamp-duty adjudication material must be considered before sustaining income-tax additions based on alleged on-money investment.

Non-consideration of the stamp-duty adjudication under Section 47(A)(1) and the connected appeal under Section 47(A)(5) rendered the income-tax orders unsustainable because the statutory market-value determination was material to the dispute over alleged on-money investment. The assessment and appellate authorities relied on seized diary entries and the assessee's statement, but failed to examine the specific ground based on the Stamp Act proceedings despite it being raised before them. As that relevant material had a direct bearing on the addition sustained, the findings were incomplete and could not stand, leading to setting aside and remand for fresh consideration.

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Issues: Whether the orders of the appellate authorities were sustainable despite non-consideration of the adjudication under Section 47(A)(1) and the appeal under Section 47(A)(5) of the Indian Stamp Act.

Analysis: The assessment and appellate orders proceeded on the basis of the seized diary entries and the assessee's statement, but the specific ground based on the stamp-duty adjudication was not examined. The statutory determination of market value and the connected appellate order under the Stamp Act were material to the dispute over the alleged on-money investment and had a direct bearing on the addition sustained under the Income-tax Act. Since this relevant material was raised before the lower authorities but not adjudicated, the findings could not be treated as complete and sustainable.

Conclusion: The non-consideration of the stamp-duty adjudication vitiated the impugned orders, warranting setting aside and remand for fresh consideration in favour of the assessee.

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