Unexplained investment cannot be based only on registration date when the property transaction was executed earlier.

Investment in immovable property cannot be treated as unexplained merely by referring to the registration date when the transaction was executed earlier. The Tribunal noted that the purchase was executed on 26/28.03.2016 and registered on 06.04.2016, and that the lower authorities had proceeded on the date of registration instead of the actual date of investment. Applying the principle that taxability must attach to the year of transfer or investment, not registration alone, the addition under sections 69, 69A and 115BBE was found unsustainable and deleted in favour of the assessee.

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Issues: Whether the addition made on account of investment in immovable property as unexplained under sections 69, 69A and 115BBE of the Income-tax Act, 1961 could be sustained by treating the investment as arising on the date of registration rather than the actual date of transaction.

Analysis: The transaction for purchase of the property had been executed on 26/28.03.2016 and was registered on 06.04.2016. The lower authorities proceeded on the date of registration instead of the actual date of investment. The Tribunal followed the principle that taxability must attach to the transfer or investment year and not merely to the date of registration, and applied that principle to the facts before it.

Conclusion: The addition was held to be unsustainable and was directed to be deleted, in favour of the assessee.

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