Unexplained investment in immovable property fails where the registered sale deed and record do not support the alleged higher consideration.

An addition for unexplained investment in immovable property could not be sustained where the registered sale deed recorded consideration of Rs. 30,00,000 and the Revenue produced no material to prove the alleged higher payment of Rs. 1,23,00,000. The recorded deed was consistent with a price stated to be above the prevailing circle rate, and the attempted section 69 addition depended only on assumption rather than evidence of actual consideration. In the absence of contrary proof, the higher alleged investment was not established and the addition was deleted in favour of the assessee.

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Issues: Whether the addition of Rs. 1,23,00,000 as unexplained investment in immovable property under section 69 of the Income-tax Act, 1961 was justified when the registered sale deed reflected a consideration of Rs. 30,00,000 and no material supported the higher alleged consideration.

Analysis: The registered sale deed placed on record showed the sale consideration as Rs. 30,00,000, which was stated to be above the prevailing circle rate. No evidence was brought by the Revenue to establish that the property was actually purchased for Rs. 1,23,00,000. In the absence of supporting material, the addition rested only on assumption and not on the transaction recorded in the sale deed.

Conclusion: The addition under section 69 was unsustainable and was deleted in favour of the assessee.

Ratio Decidendi: An addition for unexplained investment cannot be sustained when the recorded sale deed and surrounding material do not support the alleged higher consideration and the Revenue fails to adduce contrary evidence.

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