Law:

Section:

Section 69 of the Income-tax Act, 1961 - Unexplained investments - Assessment year 1996-97 Where donors had purchased plots of land through registered sale deeds and same were mutated in their names and, subsequently, out of love and affection they had donated land to assessee-trust through registered gift deeds, though expenses on registration charges and stamp papers were incurred by assessee, Assessing Officer was not justified in assessing value of land and registration charges as unexplained investment in assessee's hands [In favour of assessee] During the assessment year in question, the assessee-trust received 111 plots of land by way of gift/donation from 46 donors. All the 46 donors had purchased the land, which they had gifted, through registered sale deeds sometimes during the period 1992-94. They had gifted the land by way of registered gift deeds. The assessee incurred an expenditure towards purchase of stamp papers and registration charges for execution of the gift deeds. The assessing authority added the amount towards the value of the land and expenses as unexplained investment under section 69. Held that, all the donors had purchased the plots of land through registered sale deeds and the same were mutated in their names and subsequently, out of love and affection they had donated the land to the assessee-trust through registered gift deeds though the expenses on registration charges and stamp papers were incurred by the assessee. On facts, there was no question of unexplained investment in the acquisition of the plots in question, which had been received by way of gift. Shambhu Chopra for the Revenue. JUDGMENT The present appeal under section 260A of the Income-tax Act, 1961 (hereinafter referred to as "the Act", arises out of the order of the Income-tax Appellate Tribunal, Agra Bench, Agra, hereinafter referred to as "the Tribunal" dated January 24, 2006, relating to the assessment year 1996-97. 2. Briefly stated the facts giving rise to the present appeal are as follows : 3. The respondent-assessee is a trust registered under section 12A of the Act. During the period April 1, 1996, to March 31, 1996, relevant to the assessment year in…

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