Mumbai: Buying a property jointly with a spouse or another member of the family does not mean one co-owner can automatically be made liable for the entire tax arising from a difference between the purchase price and the property’s stamp-duty value, the Mumbai bench of the Income Tax Appellate Tribunal (ITAT) has held.
Because no action was taken by the I-T department in the case of his wife could not justify adding the entire difference in the husband’s hands, the tax tribunal said, merely. The Mumbai ITAT did not accept this approach. It noted that the ownership shares in the property were specifically recorded.
Because it did not have an occupation certificate and certain basic amenities were unavailable, the taxpayer argued that the flat’s actual market value was lower. Because another co-owner was not assessed, first, a tax dispute arising from the difference between the purchase price and stamp-duty value cannot simply be loaded in full on one co-owner. The ITAT order also brings out an important issue for property buyers, where their purchase price is held to be below the stamp-duty valuation. He had also specifically requested that the valuation be referred to a departmental valuation officer (DVO). For property buyers, the ruling offers two useful takeaways. Second, where the taxpayer genuinely disputes the stamp-duty valuation and provides supporting valuation evidence, the valuation issue has to be properly examined. You Can Also Check: Gold Rate in Mumbai | Silver Rate in Mumbai | Bank Holidays in Mumbai | Public Holidays in Mumbai | Mumbai AQI | Weather in Mumbai | Petrol Price in Mumbai | Diesel Price in Mumbai | CNG Price in Mumbai | LPG Price in Mumbai