No Capital Gains Tax for Joint Owner Without Beneficial Ownership : ITAT Mumbai

The Income Tax Appellate Tribunal (ITAT) Mumbai ruled that a person listed as a property owner but not financially involved is not liable for capital gains tax.

The case involved V.N. Jain, who was a joint owner with his brother of a property sold for ₹54 lakh in 2014-15. The tax officer taxed Jain’s share of ₹27 lakh as no relinquishment document was provided.

However, ITAT found that Jain neither invested in the property nor received any money. Since his brother declared the full sale amount in his tax returns, the tribunal ruled in Jain’s favor.