Now Reading: Chennai seller wins tax case over stamp duty value difference
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Chennai seller wins tax case over stamp duty value difference
The Income Tax Appellate Tribunal (ITAT) Chennai on July 8, 2026 ruled in favour of property seller Pragalanadane, quashing a tax demand on Rs 99 lakh. He had sold land in West…
The Story in Brief
The Income Tax Appellate Tribunal (ITAT) Chennai on July 8, 2026 ruled in favour of property seller Pragalanadane, quashing a tax demand on Rs 99 lakh. He had sold land in West Chennai for Rs 94 lakh in 2017-18, but the Tamil Nadu government's stamp duty value was Rs 1.93 crore.
The tax department invoked Section 50C, taxing the gap. ITAT held that since Pragalanadane had signed an agreement to sell on July 11, 2013 and received Rs 48.5 lakh via RTGS on the same day, the stamp duty value as on the agreement date should apply, not the registration date. The earlier agreement need not be registered to claim this benefit, the tribunal said.
The Indian Opinion
This verdict shows that proper documentation and banking trails can check overzealous tax demands. Some will paint this as yet another case of bureaucratic harassment, but the tribunal simply applied the existing proviso under Section 50C, it is not a blank cheque. Others might argue the law is too lenient, yet the conditions of prior agreement and part payment in bank are strict. The real test is whether the income tax department appeals to the High Court or accepts this interpretation.
Source: economictimes.indiatimes.com
This story was synthesised by AI from the source linked above.
