{
  "id": 11370421,
  "title": "Property value rose before registration; ITAT scraps Rs 11.35 lakh tax on buyer",
  "url": "https://urgent.news/2026/10/02/property-value-rose-before-registration-itat-scraps-rs-11-35-lakh-tax",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-02T05:31:41.000Z",
  "source": {
    "name": "Times of India",
    "slug": "times-of-india",
    "url": "https://timesofindia.indiatimes.com/business/india-business/homebuyer-paid-rs-91-lakh-upfront-for-a-rs-1-24-crore-property-but-circle-value-rose-to-rs-1-46-crore-by-registration-why-itat-kolkata-gave-her-tax-relief-and-deleted-rs-11-35-lakh-addition/articleshow/134630669.cms"
  },
  "original_language": "en",
  "account": "In 2021, a couple entered into a registered agreement to purchase a property for Rs 1.23 crore. However, the stamp duty or circle value of the property increased to approximately Rs 1.462 crore by the time of registration in September 2023. The taxpayer argued that the assessors incorrectly used the higher stamp duty valuation instead of the original purchase price when calculating the additional tax liability under Section 56(2)(x). The Income Tax Appellate Tribunal (ITAT) in Kolkata agreed with the taxpayer, citing specific provisions in Section 56(2)(x) that allow consideration of the stamp duty value as on the agreement date if payment was made through prescribed banking channels before the agreement. The ITAT dismissed the tax addition, overturning the previous decision and providing tax relief to the homebuyer.",
  "summary": "Under Section 56(2)(x), there is applicable taxation of such a difference in the buyer's hands if the stamp duty value of the property is higher than the purchase consideration by more than the greater of Rs 50,000 or 10% of the consideration. Here, the difference of approximately Rs 22.71 lakh exceeded 10% of the agreed purchase price of Rs 1.23 crore.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}