Unexplained money addition under section 69A fails where property payment is shown as outstanding and later supported by bank and TDS evidence.

An addition as unexplained money under section 69A was found unsustainable where the assessee reflected the amount as an outstanding property purchase liability in the balance sheet and supported later payment through bank statements and TDS evidence. Although the sale deeds stated receipt of full consideration, they did not specify the mode or particulars of payment, and the record supported the assessee's explanation that the balance was paid subsequently. The addition rested only on suspicion that the amount had already been paid at execution, so it was deleted.

---

---

Issues: Whether the addition of Rs. 20 lakhs as unexplained money under section 69A of the Income-tax Act, 1961 was sustainable when the assessee showed the amount as outstanding towards purchase of property and produced subsequent payment evidence with TDS payment.

Analysis: The outstanding amount was reflected in the balance sheet in relation to two property purchases. Though the sale deeds recorded receipt of the full consideration, they did not specify the mode and particulars of payment. The assessee produced bank statement evidence showing subsequent payment of the balance amount and also produced evidence of TDS deduction and payment. On these facts, the outstanding liability was found to be supported by the record, and the addition rested only on suspicion that the amount had already been paid at the time of execution of the sale deeds.

Conclusion: The addition under section 69A was not sustainable and was deleted, in favour of the assessee.

---