G K Properties Private Limited Vs ITO (ITAT Hyderabad)
Outstanding Property Consideration Subsequently Paid Cannot Be Treated as Unexplained Money u/s 69A
The Hyderabad Bench (SMC) of the ITAT allowed the assessee’s appeal for AY 2020-21 and deleted the addition of ₹20 lakh made under section 69A. The Assessing Officer had treated the outstanding balance shown in the balance sheet towards purchase of two immovable properties as unexplained money, relying solely on the recital in the sale deeds that full consideration had been received by the seller.
The Tribunal observed that although the sale deeds mentioned receipt of full consideration, they did not specify the mode or particulars of payment. The assessee substantiated its claim that ₹20 lakh (₹10 lakh per property) was deferred by mutual arrangement and subsequently paid through banking channels, supported by bank statements and TDS challans evidencing deduction and payment of TDS on the entire consideration. Once the subsequent payment and corresponding TDS were established on record, the outstanding liability reflected in the books was held to be genuine. The addition under section 69A, based merely on suspicion and ignoring documentary evidence, was therefore unsustainable and rightly deleted. The appeal was accordingly allowed.
FULL TEXT OF THE ORDER OF ITAT HYDERABAD
