Property Acquisition Deemed Complete Upon Full Payment, Not Registration Date Under Sections 69 and 56(2)(vii)

The ITAT allowed the taxpayer's appeal, setting aside additions made under sections 69 and 56(2)(vii) regarding property acquisition. The Tribunal determined that the property was purchased in the preceding assessment year with full consideration discharged according to the payment schedule, while only the conveyance deed was registered during the year under review. The AO erroneously concluded the property was purchased in the current financial year. The ITAT noted that the taxpayer had properly disclosed all property payments in their income tax return, with all transactions conducted through banking channels. Despite ex-parte proceedings before lower authorities, the Tribunal decided the case on merits rather than remanding it, directing the AO to delete the additions. .....

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