Now Reading: Higher stamp duty value alone cannot prove hidden investment: ITAT Mumbai
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Higher stamp duty value alone cannot prove hidden investment: ITAT Mumbai
Higher stamp duty value alone cannot prove hidden investment: ITAT Mumbai
The Income Tax Appellate Tribunal (ITAT) Mumbai has ruled that a higher stamp-duty valuation alone cannot establish an unexplained investment under Section 69B of the Income-tax Act. The ruling came in a…
The Story in Brief
The Income Tax Appellate Tribunal (ITAT) Mumbai has ruled that a higher stamp-duty valuation alone cannot establish an unexplained investment under Section 69B of the Income-tax Act. The ruling came in a case where a buyer purchased a Pune property for Rs 6.5 crore, while the stamp-duty value was Rs 8.85 crore. The tax department had added Rs 2.35 crore as undisclosed investment, but ITAT deleted the addition, noting there was no evidence of extra payment beyond the recorded consideration. The tribunal distinguished Section 50C, stating its deeming fiction for sellers does not automatically apply to buyers.
The Indian Opinion
This ruling should cool the tax department's reflex to treat every below-stamp-duty purchase as hidden wealth. But buyers should not mistake it for a free pass. Section 69B still exists; the department just needs actual proof, not mere valuation gaps. The real test will be whether the taxman now gathers bank statements and builder agreements to back his claims, or simply appeals this order.
Source: livemint.com
This story was synthesised by AI from the source linked above.
