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ITAT deletes tax additions in two property dispute rulings
The Income Tax Appellate Tribunal has deleted tax additions in two separate cases involving disputed property transactions, both rulings published by Livemint. In the first, the Mumbai ITAT set aside a Rs 25 lakh addition against flat buyer Shivaji Tukaram Pawale for assessment year 2017-18, ruling the tax department cannot rely on third-party statements without giving the taxpayer access to them and an opportunity to cross-examine. The department had alleged Pawale paid cash over the declared consideration based on statements from builder partners, which he denied.
In the second case, the Ahmedabad ITAT deleted a Rs 3.41 crore capital gains addition against landowner Suraj Jayantilal Patel, where a sale deed for Rs 6.82 crore was executed using a forged power of attorney and signatures. A civil court had already declared the sale void. The tribunal held there was no evidence Patel received any money, and the pending appeal by buyers did not justify a protective addition. Both rulings underscore procedural requirements for the tax department when relying on third-party evidence.
Indian Opinion Analysis
Livemint reports both rulings as neutral straight reporting, focusing on the tribunal's reasoning and implications for taxpayers. The common thread is the ITAT insisting on basic procedural fairness: the tax department cannot make additions based on evidence the taxpayer never saw or could challenge. In the Mumbai case, the department relied on builder statements without allowing cross-examination. In the Ahmedabad case, it taxed a sale a civil court had declared void and never verified whether the alleged seller actually received money. The coverage does not take sides but highlights how the tribunals are enforcing evidentiary standards that protect individual taxpayers. Watch for whether the department appeals either ruling to the High Court.
Coverage: 2 sources, 2 neutral
Sources (2): livemint.com (neutral report), livemint.com (2) (neutral report)
This story was synthesised by AI from the 2 sources linked above. Methodology and corrections.
Updated: this story now draws on 2 sources.
