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Mar 18, 2026
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Gurugram man gets Rs 9.8 crore discount on Rs 33 crore flat; Income Tax Dept treats it as income — how ITAT ruled
The Income Tax Appellate Tribunal (ITAT), Delhi, has delivered a significant ruling for property buyers and high-value real estate transactions, holding that a builder’s rebate or discount cannot automatically be treated as taxable income.
The case involved Sh. Satya Prasan Rajguru vs DCIT (AY 2021–22), where the tax department attempted to tax a Rs 9.8 crore discount received by the buyer on the purchase of a luxury flat in Gurugram.
The case: Rs 23 crore flat and Rs 9.8 crore builder discount
The taxpayer had purchased a high-end apartment in DLF Camellias, Gurugram, for about Rs 23.13 crore, against a higher listed value of around Rs 32.95 crore.
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