Taxman adds Rs 55.2 lakh over joint Rs 80 lakh property; ITAT grants relief

The Income Tax Appellate Tribunal (ITAT) has granted relief to a taxpayer after the Income Tax Department added Rs 55.2 lakh to his assessment for a jointly purchased property. The dispute arose for the 2016-17 assessment year after the tax department reopened the assessment using its Risk Management Strategy, having identified that the taxpayer had acquired an immovable property during the 2015-16 financial year.

The property in question was bought jointly by the man, his wife, and his father for a total consideration of Rs 80 lakh. The tax authority's additional assessment of Rs 55.2 lakh over this joint purchase value was successfully challenged before the tribunal, resulting in a favorable ruling for the taxpayer.