INCOME TAX26 Sept 2026
Property bought for ₹48 lakh, stamp value ₹58.7 lakh: Why ITAT cancelled ₹70,700 tax penalty | Mint
A recent ITAT (Income Tax Appellate Tribunal) ruling shows that buying property below its stamp-duty value can invite tax scrutiny. A Ghaziabad buyer paid ₹48 lakh for a property valued at ₹58.7 lakh for stamp duty, and got a ₹70,700 penalty for under-reporting. The tribunal cancelled it, as he explained the gap honestly with no intent to hide income. So declare such gaps in your return.
Key Statutory Highlights
- A Ghaziabad taxpayer bought a property for ₹48 lakh while its stamp duty value was ₹58.7 lakh, leaving a ₹10.7 lakh difference.
- The Assessing Officer imposed a ₹70,700 penalty under Section 270A for under-reporting of income.
- The ITAT Delhi set aside the penalty, noting the tax department placed no evidence of intent to conceal income on record.
Actionable Advice for Taxpayers / Founders:If you buy property below its stamp-duty value, report that difference in your income-tax return and keep documents ready explaining your position. Speak to a tax professional before assuming any penalty will be cancelled.
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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