Explained loan evidence defeats unexplained investment addition, while stamp-duty valuation requires fresh review of property transaction facts.
Documentary proof including the lender's PAN, loan confirmation and bank statement established receipt of a family loan through banking channels; absent identified defects, the unexplained-investment addition was deleted. The stamp-duty-value addition requires fresh examination because the MOU, payment, possession, part performance, property condition, valuation and the alleged purchase of two apartments were not properly assessed. Applicability of the deemed-property-value provision, the statutory definition of transfer and part-performance principles must be independently evaluated after an effective hearing, without mere reliance on the remand report.
Issues: (i) Whether the loan of Rs. 3,20,499 received from the assessee's sister constituted unexplained investment under Section 69 of the Income-tax Act, 1961; (ii) Whether the addition of Rs. 14,60,000 based on stamp duty value under Section 56(2)(vii)(b) of the Income-tax Act, 1961 required fresh adjudication.
Issue (i): Whether the loan of Rs. 3,20,499 received from the assessee's sister constituted unexplained investment under Section 69 of the Income-tax Act, 1961.
Analysis: The assessee furnished the lender's PAN, loan confirmation and bank statement evidencing receipt through banking channels. No defect or discrepancy in those documents was identified, although the addition proceeded on the premise that confirmation had not been furnished.
Conclusion: The loan was satisfactorily explained and the addition under Section 69 was deleted, in favour of the assessee.
Issue (ii): Whether the addition of Rs. 14,60,000 based on stamp duty value under Section 56(2)(vii)(b) of the Income-tax Act, 1961 required fresh adjudication.
Analysis: The factual position concerning the March 2014 MOU, payment of Rs. 1,50,000, delivery of possession, part performance, property condition and valuation had not been correctly appreciated. The observation that two apartments had been purchased also required factual verification. Examination of the applicability of Section 56(2)(vii)(b), Section 2(47) of the Income-tax Act, 1961 and Section 53A of the Transfer of Property Act was directed after affording effective opportunity of hearing and independently evaluating the material rather than merely relying on the remand report.
Conclusion: The addition under Section 56(2)(vii)(b) was restored for fresh adjudication.
Final Conclusion: The unexplained-investment addition is unsustainable on the evidence produced, while the stamp-duty-value addition remains to be determined afresh upon proper verification of the transaction and relevant material.