New Delhi, Sept. 23 -- When a property is purchased at a price below its stamp duty value, it may trigger scrutiny under the Income Tax Act, particularly if the gap is significant.

A recent ruling by a Pune bench of the Income Tax Appellate Tribunal (ITAT) has highlighted the importance of the prescribed tolerance limit in such cases.

In the case, 'Aslam Sadule Khan, Raigad Vs. ITO WD-4, Panvel, the taxpayer purchased a 2,080.28 sq m parcel of land for Rs.3.91 crore in July 2025. The stamp duty authorities valued the property at Rs.6 crore.

The Assessing Officer (AO) initially treated the Rs.2.09 crore difference as 'taxable income' under Section 56(2)(vii)(b) of the Income-Tax Act, 1961. A Departmental Valuation Officer (DVO) subseque...