Chemangattu Jose John Vs DCIT (ITAT Cochin)
Higher actual sale consideration Vs Lesser in registered sale deed- No unexplained Income- Addition u/s 69A deleted- ITAT Cochin
Assessee sold two agricultural properties, the actual sale consideration of which was Rs.34 lakhs though as per registered deeds, the sale consideration was Rs.15.59 lakhs. AO made treated Rs 18.41 lakhs as unexplained & made addition u/s 69A on the ground that assessee failed to give satisfactory reply. CIT(A) upheld the order of AO.
Before the Tribunal, Assesee argued that he had no control over the value adopted in the registered sale deed by the authority under Indian Stamp Act & the purchaser is liable to pay stamp duty & may choose to register at circle rate value as prescribed. Assessee being an NRI was not familiar with a local registration practice, therefore, full consideration of Rs.34 lakhs was received through transparent banking channel as it already disclosed by the assessee before the AO. Therefore, provisions of sec 69 which shifts onus to the assessee to explain the nature & source of the money stands satisfied. Since, no other income arose in India in the year in question, the alleged addition cannot be sustained in the hands of the assessee.
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