Smt. Nomula Narmada Reddy Vs DCIT (ITAT Hyderabad)
Unsigned sale agreement not conclusive: ITAT Hyderabad remands capital-gains addition for limited verification
Hyderabad ITAT set aside the addition of ₹30.82 lakh made towards alleged undisclosed sale consideration & restored the matter to the Assessing Officer for limited verification.
Assessee had sold Plot No. 233 & disclosed sale consideration of ₹6.44 lakh as per the registered sale deed. During a search u/s 132 in a group case, an unsigned draft agreement of sale was found showing consideration of ₹37.26 lakh. Relying solely on this document & the sworn statement of Assessee’s son (GPA holder) recorded u/s 132(4), AO treated the difference as unexplained capital gains, which was upheld by CIT(A).
Tribunal held that although there were similarities between the unsigned agreement & the registered sale deed- such as the same property, same purchaser, & execution by the son as GPA holder- an unsigned agreement by itself cannot conclusively establish higher sale consideration unless supported by corroborative evidence of actual receipt.
ITAT noticed that the unsigned agreement mentioned payment of ₹13 lakh to the vendor. It therefore directed AO to verify whether this amount was actually received through identifiable banking channels either by Assessee or by her son. Tribunal clarified that only if such receipt is established can the document cease to be treated as a “dumb document”; otherwise, the addition cannot survive.
