Income Tax
ITAT Rajkot Limits Property On-Money Addition to Ten Percent Profit Element
Originally reported by Taxguru as: Income Tax | Cash On-Money: ITAT Sustains Only 10% Profit Element
26 Oct 2026, 6:05 pm IST · Xecute.finance News Desk
The crisp read
ITAT Rajkot reduced a disputed property on-money addition of Rs 2.36 lakh down to Rs 23,656. The tribunal ordered standard tax rates instead of Section 115BBE and condoned a 275-day delay.
Why it matters: Important for tax practitioners handling real estate cash transactions, ITAT dispute resolutions, and penalty applicability under Section 115BBE.
Deep dive - the full story
ITAT Rajkot addressed a tax dispute involving cash on-money in a property transaction, reducing the disputed addition of Rs 2,36,000 to just Rs 23,656 by sustaining only the 10 percent profit element. The tribunal further ruled that normal tax rates apply to the amount, setting aside the harsher provisions of Section 115BBE.
In addition to the substantive relief on tax computation, the bench condoned a significant 275-day filing delay, allowing the appeal to be heard on its merits.
Tax professionals dealing with similar real estate additions should cite this precedent regarding profit estimation and the avoidance of Section 115BBE penalties.
Source: taxguru.in
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