ITAT Mumbai rules stamp-duty gap tax cannot fall entirely on one co-owner
A Mumbai couple jointly purchased a flat worth Rs 60 lakh, after which tax authorities added the entire Rs 34.81 lakh difference between the purchase price and the property's stamp-duty value to the husband's income alone. The Income Tax Appellate Tribunal (ITAT) Mumbai took objection to this approach in a recent ruling. The tribunal questioned whether the full stamp-duty gap could be taxed in the hands of just one co-owner when the property was bought jointly. The case highlights an important legal question around how Section 56(2) income tax provisions apply to jointly held property purchases.





