₹66 lakh tax penalty over son’s ₹1.1 crore flat: How senior citizen won ITAT relief

A property investment intended to help a family secure a home turned into a tax dispute for a senior citizen in Navi Mumbai after her son included her as a joint owner of a flat purchased for ₹ 1.10 crore. The Income Tax Department treated two documents relating to the same property as separate purchases and subsequently made a ₹ 2.20 crore addition to her taxable income.

However, the Mumbai bench of the Income Tax Appellate Tribunal (ITAT), in an order dated 23 September 2026, granted relief to the senior citizen after finding that the same property transaction had been counted twice.

Jaishri Pande, a senior citizen with no independent source of income, had not filed an income tax return for the relevant assessment year. The tax authorities initiated scrutiny after the Risk Management System (RMS) flagged two entries relating to property transactions , each valued at ₹ 1.10 crore.

The entries were dated 18 September and 5 November 2015. The assessing officer (AO) treated them as two separate purchases and reopened her assessment. A notice under Section 148 of the Income Tax Act, 1961, was issued on 26 March 2023. On 29 February 2024, the AO completed the reassessment and added ₹ 2.20 crore as an ‘unexplained investment’. The department also imposed penalties totalling about ₹ 66.2 lakh.

Pande's appeals were initially rejected because they were filed late. Before the tribunal, she explained that the notices had been sent to her old address, recorded in her PAN details and had not reached her.

She said she learnt of the tax demands and discrepancies only on 4 February 2026 and acted promptly thereafter.

After reviewing the circumstances, the ITAT accepted her explanation for the delay, condoned it and proceeded to examine the case on its merits.

The tribunal concluded that the agreement for sale registered on September 18, 2015, and the deed of assignment executed on November 5, 2015, pertained to the same flat in CBD Belapur, Navi Mumbai. The documents were found to be inadequate in order to clearly establish two separate purchases or payments.

Furthermore, the banking records and data submitted by Jaishri Pande also identified her son, Manu Pande, as the principal borrower and her as a co-applicant on a housing loan totalling ₹ 1,09,71,988. Therefore, the tribunal held that the mere mention or appearance as a joint owner in a registered document does not establish that the person funded the entire purchase of the property.

In summary, joint ownership alone does not establish an unexplained investment; the actual transaction documents, payment trail, and other core aspects matter. These factors should not be overlooked by taxpayers, as they are key to ensuring meaningful compliance with tax authorities.

Disclaimer: This article is for informational purposes only and should not be construed as tax or legal advice. The facts discussed are illustrative, and tax outcomes depend on the facts of each case and applicable law. For complete details, refer to the relevant order on the official ITAT website.

Shivam writes on personal finance, equity markets, and mutual funds.