Assessee wins appeal as addition under section 69A deleted after proving genuine property sale transactions through banking records

ITAT Cochin allowed the assessee's appeal and deleted the Rs. 18,41,000 addition made under section 69A of the Income Tax Act for AY 2015-16. The addition arose from a discrepancy between actual sale consideration (Rs. 34,00,000) and registered deed value (Rs. 15,59,000) for agricultural properties. The Tribunal held the assessee discharged the burden of proof by demonstrating through bank statements that full payment was received via transparent banking channels. The lower registration value resulted from the purchaser's decision to register at circle rate for stamp duty purposes, beyond the assessee's control. Since revenue failed to prove funds originated from unaccounted sources, the addition was unsustainable.

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The Appellate Tribunal (ITAT Cochin) allowed the assessee's appeal against the addition of Rs. 18,41,000/- made u/s 69A of the Income Tax Act for AY 2015-16. The Assessing Officer had added this amount due to a discrepancy between the actual sale consideration (Rs. 34,00,000/-) and the registered sale deed value (Rs. 15,59,000/-) for two agricultural properties. The Tribunal held that under section 69, the onus lies on the assessee to explain the nature and source of credited money. The assessee discharged this burden by demonstrating through bank statements that the full amount was received via transparent banking channels and that the lower registered value resulted from the purchaser's choice to register at the circle rate for stamp duty purposes, a practice beyond the assessee's control. Since the revenue failed to prove the funds originated from unaccounted sources, the addition was "unsustainable." The Tribunal directed deletion of the addition, stating the assessee had proved "the identity of the buyer, genuineness of the transaction and source of fund," thereby satisfying the requirements of section 69. The appeal was allowed.

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