Unexplained investment in land: comparable purchase rates alone cannot sustain an addition without direct verification of actual consideration.

An addition for unexplained investment in land under section 69B cannot be sustained merely on the basis of comparable purchases unless there is direct verification of the actual consideration or other cogent corroborative evidence. Where the seller is not examined, the seller's return and receipt of consideration are not verified, and no valuation reference is made, comparable rates alone do not conclusively prove extra payment. On those facts, the addition was deleted on merits, and the stamp duty value of the Sub-Registrar's Office was to be adopted as the purchase consideration per acre.

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Issues: Whether the addition made under section 69B on account of alleged higher consideration for purchase of land was justified, and whether the purchase cost should be adopted on the basis of comparable purchases or the stamp duty value.

Analysis: The addition was founded on impounded materials and a comparable rate adopted from purchases made by others, but the seller was not examined under section 133(6), the seller's return and receipt of actual consideration were not verified, and no reference was made for valuation. In these circumstances, the comparable rate could not, by itself, conclusively establish that the assessee had paid more than the recorded consideration. The absence of direct verification from the seller and the non-consideration of the impounded material weakened the basis for sustaining the estimate of undisclosed investment.

Conclusion: The addition under section 69B was not sustained, and the Assessing Officer was directed to adopt the stamp duty value of the Sub-Registrar's Office as the actual purchase consideration per acre.

Final Conclusion: The appeal was allowed and the impugned addition stood deleted on merits.

Ratio Decidendi: An addition for unexplained investment in land cannot be sustained merely on comparable purchases unless supported by direct verification of actual consideration or other cogent corroborative evidence.

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