Unexplained-money rules exclude returned disclosed advances, while disputed stamp values require valuation before tax liability is finalized.
Section 69A does not cover cash alleged to be returned from disclosed advances paid through banking channels without evidence of an independent unexplained accretion; the cash-return and alleged interest additions consequently fail. Section 56(2)(x)(b) may apply where the stamp-duty value of immovable property exceeds the consideration beyond the statutory threshold, regardless of whether the transaction is characterised as builder financing. Where stamp-duty value is disputed, valuation under the mechanism linked to section 50C is required before the taxable differential is determined. Denial of set-off of brought-forward long-term capital loss cannot rest on an alleged interest characterisation that fails, although eligibility remains subject to verification.
Issues: (i) Whether cash allegedly returned by builders was taxable as unexplained money and whether alleged interest on builder-financing was taxable; (ii) Whether the difference between stamp-duty value and purchase consideration was chargeable under section 56(2)(x)(b); (iii) Whether set-off of brought-forward long-term capital loss against current-year long-term capital gain could be denied.
Issue (i): Whether cash allegedly returned by builders was taxable as unexplained money and whether alleged interest on builder-financing was taxable.
Analysis: Section 69A cannot apply to an amount which, on the Revenue's own premise, represents return of the assessee's disclosed funds earlier paid through banking channels, without evidence of a separate unexplained asset, investment or accretion. The material supporting the alleged interest did not establish a separately received cash return where the transactions, rental income and gains on subsequent sale supported the position that returns were embedded in capital appreciation.
Conclusion: In favour of the assessee: deletion of the section 69A addition is sustained, and the addition for alleged interest income is deleted.
Issue (ii): Whether the difference between stamp-duty value and purchase consideration was chargeable under section 56(2)(x)(b).
Analysis: Section 56(2)(x)(b) applies where stamp-duty value of immovable property acquired for consideration exceeds that consideration beyond the statutory threshold; its applicability does not depend on the transaction being characterised as builder financing. Where the stamp-duty value is disputed, the valuation mechanism linked to section 50C requires consideration before determining the taxable differential.
Conclusion: In favour of the Revenue on the legal issue: section 56(2)(x)(b) is applicable in principle; the addition requires fresh determination after valuation by the Departmental Valuation Officer.
Issue (iii): Whether set-off of brought-forward long-term capital loss against current-year long-term capital gain could be denied.
Analysis: The basis for denying the set-off-that the declared capital gains represented disguised interest income-does not survive after deletion of the interest addition. The availability, eligibility and utilisation of the brought-forward loss against the declared capital gains require verification from the assessment records.
Conclusion: In favour of the assessee to the extent that the denial is set aside; the claim must be verified and allowed in accordance with law if eligible.
Final Conclusion: The alleged cash-return and interest additions fail, while the stamp-value differential and capital-loss set-off require redetermination through statutory valuation and verification.
Ratio Decidendi: Money alleged to have been returned out of a disclosed prior advance cannot be taxed as unexplained money without evidence of an independent unexplained accretion.