Unregistered Agreement Not Valid for Capital Gains: ITAT Deletes Rs. 30.5 Lakh and Rs. 2.3 Cr Additions for Property Transaction

ITAT deletes property transaction additions as unregistered agreements are invalid for capital gains computation, safeguarding taxpayer rights. The Income Tax Appellate Tribunal (ITAT) has ruled that additions made to a taxpayer's income concerning property transactions cannot be sustained if the underlying agreements are unregistered. The tribunal emphasized that unregistered agreements cannot be considered valid instruments for the transfer of property, and therefore, no capital gains or other income can be computed based on such unverified transactions. This decision protects taxpayers from arbitrary additions arising from uncorroborated or legally invalid property dealings.