Tag: ITAT

Latest StoriesRegulatory

Property for daughter without gift deed isn’t unexplained: ITAT

MUMBAI: The Income Tax Appellate Tribunal (ITAT) Mumbai bench has ruled that not having a formal gift deed does not automatically classify a property purchase as an ‘unexplained investment’ if the funding sources are clearly identifiable. Under tax laws, unexplained income or assets incur a harsh punitive tax rate. The ITAT stated in its May 27 ruling that a property’s purchase by a father in his daughter’s name, motivated by familial love and affection, should not be deemed questionable simply due to the absence of formal documentation. The daughter, a homemaker in Mumbai without a personal income, came under scrutiny…

Latest StoriesRegulatory

ITAT Upholds Tax Benefit for Reinvestment During Reassessment

Representative Image MUMBAI: In a ruling favoring taxpayers, the Mumbai bench of the Income Tax Appellate Tribunal (ITAT) has determined that a claim for capital gains exemption under Section 54 of the Income Tax (I-T) Act cannot be rejected solely due to the absence of an initial I-T return. The tribunal stated that such claims should be considered if made during reassessment proceedings. The case centered around M Sheikh, a taxpayer who initially did not file an ‘original’ I-T return as required under Section 139(1) but later submitted it in response to a notice for reassessment under Section 148. This…

Latest StoriesRegulatory

No capital gains tax if flat’s sale price matches cost: ITAT

MUMBAI: The Income Tax Appellate Tribunal (ITAT) has determined that capital gains tax cannot be applied when the sale price of a property matches its purchase price, despite initial disagreements from the I-T officer due to documentation issues. In a recent decision, the Mumbai bench of the tribunal supported the appeal from taxpayer Kamini V, reversing a Rs 42.5 lakh addition made by the tax department under ‘short-term capital gains’ for the fiscal year 2015-16. The case involved a jointly owned residential property bought for Rs 85 lakh and sold two years later for the same amount. The I-T officer…

Latest StoriesRegulatory

Redeveloped Flat Exempt from ‘Other Income’ Tax: ITAT

MUMBAI: The Income Tax Appellate Tribunal (ITAT) in Mumbai has favored a taxpayer who received a flat valued at ₹11.7 crore as part of a redevelopment project in exchange for surrendering his tenancy rights. ITAT determined that the surrender of tenancy rights constituted the transfer of a capital asset, qualifying taxpayer V Asher for an exemption under Section 54F of the Income Tax Act. The tribunal also stated that the flat’s value should not be taxed as ‘Income from other sources.’ During the review of Asher’s 2019-20 tax return, the I-T officer questioned the legitimacy of the tenancy arrangement. Consequently,…