Tag: Income Tax Appellate Tribunal (ITAT)

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Capital Gains Tax Benefit Stays Valid Despite Delayed Deed: ITAT

MUMBAI: A recent ruling by the Income Tax Appellate Tribunal (ITAT) may prove beneficial for taxpayers engaged in under-construction or redevelopment projects. The ITAT determined that tax relief on capital gains cannot be denied solely because the final conveyance deed is executed after the stipulated period, provided the taxpayer has established enforceable rights in a specific residential property and made the investment within the required timeframe. According to Section 54 of the Income-tax (I-T) Act, taxpayers can receive capital gains relief if they reinvest funds from the sale of a house into another residential property. The ITAT has approved a…

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ITAT Cancels ₹14 Lakh ‘On-Money’ Charge for Thane Buyer

MUMBAI: The Income Tax Appellate Tribunal (ITAT) has overturned a Rs 14.25 lakh addition made against a Thane resident concerning an alleged cash payment for a flat purchase. The tribunal concluded that the I-T department was unable to produce evidence directly linking the buyer to any “on-money” transactions. The Mumbai bench of the ITAT ruled in favor of the taxpayer, who had bought a flat in Cosmos Mary Park, Thane, jointly with his wife for Rs 72 lakh in April 2012. Following a search of Cosmos Group, the real-estate developer, I-T investigators claimed to have located records suggesting cash payments…

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ITAT: Spouse’s Name on Property Papers Insufficient for Tax Sale Proceeds

MUMBAI: The Income Tax Appellate Tribunal (ITAT) in Mumbai has ruled that if a spouse’s name is included on a property for convenience or security, the income-tax department cannot automatically attribute the entire sale proceeds to that individual without assessing who actually funded and owned the property. This decision comes as a relief to a Mumbai taxpayer who faced a ₹62.5 lakh increase to her income. The tribunal instructed the I-T officer to validate her claim that she was merely a nominal co-owner, with the flat being entirely purchased and sold by her husband using his funds and that these…