New Delhi, Sept. 30 -- Buying a house with financial help from parents or a spouse can raise questions about who actually funded the property, particularly when the payments come from multiple family members. A recent Income Tax Appellate Tribunal (ITAT) ruling has highlighted why taxpayers should maintain a clear banking and documentary trail when a property is jointly purchased and funded by family members.

The Mumbai bench of the ITAT deleted a Rs.55.20 lakh unexplained-investment addition made against a taxpayer after finding that the residential property had been jointly purchased by him, his father and his wife. The tribunal found that the payments could be traced through bank statements and other documents and that there was no ba...