INCOME TAX29 Sept 2026
₹1.25 crore received under power of attorney: When can taxman treat property money in your account as taxable income? | Mint
A recent ITAT ruling says money landing in your bank account is not automatically your taxable income. The Chennai bench deleted a ₹1.25 crore addition made under section 69A, because the taxpayer received it as a power-of-attorney holder for three property owners and passed it on. If you handle property money for family or others, keep a clear paper trail.
Key Statutory Highlights
- The Chennai bench of the ITAT deleted a ₹1.25 crore addition that the tax department had treated as unexplained money under section 69A.
- The taxpayer received the money under a registered power of attorney for three property owners and later paid it on as an advance for another property.
- The tribunal noted the amounts received matched the amounts paid onward, and the department had made no such addition in the other property owner's assessment.
Actionable Advice for Taxpayers / Founders:If you receive property money for someone else, keep the registered power of attorney, the payment records and proof of the onward transfer together, since a power of attorney alone does not settle the matter.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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