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The Price Of Love? Wife Dragged Into I-T Case Over Husband's Rs 6.75-Cr Property Deal
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The Bombay High Court quashed a tax notice to a Mumbai woman in a Rs 6.75 crore property deal, citing her lack of financial contribution.
News18
The Bombay High Court has given a relief to a Mumbai woman on a tax notice following a joint ownership with her husband in a Rs 6.75 crore property deal. According to Economic Times Wealth report, the HC set aside a tax notice issued to a Mumbai woman who was made a joint owner of a Rs 6.75-crore property bought entirely with her husband's funds.
The court observed that the woman, a housewife with an annual income of just Rs 4.36 lakh, had made no financial contribution to the purchase, the ET Wealth report added.
The case arose after the Income Tax Department alleged possible tax evasion and sent notices under Section 148 of the Income Tax Act to both husband and wife. While the wife's notice has been quashed, the husband's case remains pending.
Understand The Full Case
According to the court order dated August 4, 2025, the wife's name was added to the property documents purely for convenience. Bank statements confirmed the husband paid the entire amount from his HDFC Bank account, as per ET Wealth report.
The court cited its earlier decision in Kalpita Arun Lanjekar vs. ITO (2024), where a similar notice to a non-contributing joint owner was cancelled.
Justice B.P. Colabawalla and Justice Firdosh P. Pooniwalla noted that no income had escaped assessment in the wife's case and that all payment details were traceable to her husband. They questioned why the Assessing Officer targeted her despite clear evidence.
Experts told ET Wealth Online that joint property ownership can raise red flags for tax authorities if not documented properly.
Chartered Accountant Dr. Suresh Surana told ET Wealth the purchase deed should record each co-owner's financial contribution and ownership percentage. Proper records of bank transfers, receipts, and agreements must be kept.
CA Ashish Karundia advised documenting contributions made as gifts or loans, and reflecting the correct share of income in each person's tax return.
If a co-owner hasn't contributed any money, the agreement should declare that the entire purchase was funded by the primary owner, and all related income should be shown only in their ITR.
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