New Delhi, Sept. 3 -- In an important ruling, the Mumbai bench of the Income Appellate Tribunal (ITAT) has held that when a property is jointly owned by a husband and wife or other family members, the entire difference between the purchase price and stamp-duty value cannot automatically be taxed in the hands of just one co-owner.

The tribunal delivered the ruling in the case of a Mumbai taxpayer who, in 2017, purchased a flat jointly with his wife in Chembur for Rs.60 lakh. The actual consideration paid for the property was Rs.60 lakh, while its stamp-duty value was Rs.94.8 lakh, creating a gap of around Rs.34.8 lakh.

The tax officer, however, added the entire difference to the husband's taxable income on the ground that the wife's case...