# ITAT rules Tamil Nadu property seller not liable for higher stamp duty tax 2026-08-10T16:15:08+00:00 | Governance | Indian Opinion Desk Corroboration: 1 independent outlet The Chennai bench of the Income Tax Appellate Tribunal (ITAT) has ruled in favour of a property seller who faced a tax demand of nearly Rs 99 lakh under Section 50C. Mr Pragalanadane sold a plot in Chennai for Rs 94 lakh in March 2017, but the Tamil Nadu government's stamp duty guidance value for the property on the date of registration was Rs 1.93 crore. The tax department had sought to tax the Rs 99 lakh difference as capital gains. However, ITAT accepted the taxpayer's argument that the sale consideration was fixed under an agreement to sell signed on July 11, 2013, and part payment of Rs 48.5 lakh was received via RTGS on the same day. The tribunal held that the stamp duty value as on the date of the agreement, not the registration, should apply. Another Ahmedabad ITAT ruling gave relief to a farmer who proved agricultural use of land to claim Section 54B exemption. ## Coverage - economictimes.indiatimes.com - economictimes.indiatimes.com Tags: Income tax, ITAT, property sale, Section 50C, stamp duty, tax dispute Canonical: https://indianopinion.org/chennai-seller-wins-tax-case-over-stamp-duty-value-difference/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/chennai-seller-wins-tax-case-over-stamp-duty-value-difference/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes.