Unexplained money assessments in property transfers require proof of actual receipt, not uncorroborated cash-payment claims or identified cheque advances.
Section 69A requires reliable proof that the assessee owned or received the precise sum in the relevant previous year and that its nature and source remained unexplained. The cheque advance received during property-transfer negotiations had an identified payer, banking trail and established character, so it was not unexplained money; any retained advance required consideration under section 51 in the relevant year. The alleged cash consideration lacked proof of delivery or receipt, while the agreement, broker statements and electronic communications were inconsistent or uncorroborated. The cash amount was therefore not assessable as unexplained money. Both additions were deleted.
Issues: (i) Whether the Rs. 11 lakh cheque credit received during negotiations for transfer of property could be assessed as unexplained money under section 69A; and (ii) Whether Rs. 3.83 crore was proved to have been received in cash during the previous year relevant to the assessment year 2020-21 and was assessable under section 69A.
Issue (i): Whether the Rs. 11 lakh cheque credit received during negotiations for transfer of property could be assessed as unexplained money under section 69A.
Analysis: Section 69A requires that the assessee be found to be owner of money whose nature and source remain unexplained. The banking inquiry identified the payer and cheque, and the proposed purchaser and her spouse confirmed that the amount was paid by cheque as an advance during negotiations. The payer, banking source and nature of the credit were therefore established. Any later treatment of an advance retained in connection with transfer of a capital asset falls for consideration under section 51 in the relevant year and does not render the original cheque credit unexplained.
Conclusion: The Rs. 11 lakh credit could not be assessed as unexplained money under section 69A; the addition was deleted in favour of the assessee.
Issue (ii): Whether Rs. 3.83 crore was proved to have been received in cash during the previous year relevant to the assessment year 2020-21 and was assessable under section 69A.
Analysis: The purported agreement was not reliably shown to be mutually executed and contained payment particulars inconsistent with the established banking record. The broker's accounts of total consideration and cash payment were inconsistent, and no particulars traced any cash delivery, dates of payment, intermediary, or receipt by the assessee. The electronic message relied upon for Rs. 3.83 crore was sent after the relevant previous year; its acknowledged authorship did not prove actual payment in that year. The remaining communication was explained as an estimate, and the proposed purchasers denied making cash payment. The subsequent registered sale to another purchaser supported the inference that the earlier proposed transaction had not culminated in a conveyance, though it was not treated as conclusive by itself.
Conclusion: Receipt or ownership of Rs. 3.83 crore in cash during the relevant previous year was not established for section 69A purposes; the addition was deleted in favour of the assessee.
Final Conclusion: The identified cheque advance had an established source and character, while the alleged cash consideration lacked reliable evidence of actual receipt in the relevant previous year; neither amount was taxable as unexplained money.
Ratio Decidendi: An addition for unexplained money requires reliable evidence that the precise sum was received or owned by the assessee in the relevant previous year and that its source and nature remain unexplained; inconsistent statements and uncorroborated electronic material do not, without proof of actual payment, satisfy that requirement.