New Delhi, Aug. 11 -- A Chennai taxpayer who sold property for Rs.94 lakh despite a stamp-duty value of Rs.1.93 crore has won relief from a Rs.99.06 lakh tax addition after the Income Tax Appellate Tribunal (ITAT), Chennai, held that the tax department could not deny Section 50C relief merely because the agreement to sell was unregistered.

The case concerns Aroumougam Pragalanadane, who had entered into an agreement to sell the property on 11 July 2013 for Rs.94 lakh. He received Rs.48.50 lakh through RTGS on the date of the agreement and the remaining Rs.45 lakh through banking channels on 23 March 2015. The registered sale deed was eventually executed on 7 March 2017.

By the time the sale deed was registered, however, the property's g...