INCOME TAX6 Sept 2026
Power of attorney holder slapped with ₹29 lakh LTCG tax after property sale: ITAT decides who should pay
A recent Income Tax Appellate Tribunal (ITAT) ruling clarifies that holding a power of attorney (PoA) does not mean you own the property. In this case, a man sold his mother's property as her attorney. The tax department taxed him on nearly ₹29 lakh in long-term capital gains. The Tribunal deleted that tax, saying ownership stayed with the mother. Only real owners pay capital gains tax.
Key Statutory Highlights
- The Jaipur ITAT ruled that holding a power of attorney does not transfer ownership to the attorney.
- The tax department added nearly ₹29 lakh as long-term capital gains in the son's hands, but the ITAT deleted it.
- The mother was the registered owner from 2005, and the son merely acted as her attorney during the 2011 sale.
Actionable Advice for Taxpayers / Founders:If you hold a power of attorney for a property, keep documents proving the real owner and that sale proceeds went to them. This ruling helps, but each case is decided on its own facts.
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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