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Issues involved: Appeal against deletion of addition u/s 69B of alleged undisclosed investment.
Summary: The Revenue appealed against the deletion of an addition made by the Assessing Officer under section 69B of the Income-tax Act, 1961. The case involved the purchase of a property where the Assessing Officer considered the actual consideration to be higher than what was declared, resulting in an addition of Rs. 9,79,780. The assessee contended that section 50C is applicable to sellers for computing capital gains and cannot be extended to buyers. The learned Commissioner of Income-tax (Appeals) considered various judicial pronouncements and concluded that the addition was not justified. Key Details for Each Issue: - The Assessing Officer relied on stamp duty valuation to make the addition under section 69B, but the Commissioner noted that section 50C applies to sellers, not buyers. The absence of evidence showing actual higher consideration led to the deletion of the addition. - The Commissioner referenced a decision by the Income-tax Appellate Tribunal which emphasized that the stamp duty valuation does not imply undisclosed investment by the buyer. Various judicial pronouncements supported the view that additions for unexplained investment require independent evidence. - Considering the lack of evidence beyond the valuation difference, the Commissioner found no basis for applying section 69B to the buyer. The addition was deemed unjustified based on the legal interpretations and precedents cited. This judgment highlights the importance of distinguishing between the roles of buyers and sellers under tax laws and the necessity of concrete evidence to support additions for undisclosed investments.
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