ITAT: Builder's Error Doesn't Affect Tax Benefit Claim

26 Mar 2024 CW Team

The Income Tax Appellate Tribunal (ITAT) has ruled that errors made by builders in the allotment of flats will not affect the tax benefit claims of homebuyers. This decision provides relief to homebuyers who may have faced discrepancies in the allotment process due to errors made by developers.

The ITAT's ruling came in response to a case where a taxpayer claimed tax benefits for the purchase of a flat, despite discrepancies in the allotment process caused by errors made by the builder. The tribunal held that the taxpayer's entitlement to tax benefits should not be affected by the builder's mistakes.

According to the ITAT, the taxpayer's eligibility for tax benefits is determined by the fulfilment of conditions specified under the Income Tax Act, rather than the accuracy of information provided by the builder. As long as the taxpayer meets the necessary criteria for claiming tax benefits, such as possession of the flat and fulfilment of payment obligations, they are entitled to avail of the benefits.

The ruling provides clarity and reassurance to homebuyers who may have been concerned about the impact of builder errors on their tax benefits. It emphasises the importance of fulfilling statutory requirements for claiming tax benefits, irrespective of any discrepancies in the allotment process caused by builders.

As the ITAT upholds the rights of homebuyers to claim tax benefits, it underscores the need for developers to ensure accuracy and transparency in the allotment process. The decision is likely to have wider implications for the real estate sector, promoting accountability and consumer protection in property transactions.

Technology

28 Oct 2025

Building Faster, Smarter, and Greener!

Backed by ULCCS’s century-old legacy, U-Sphere combines technology, modular design and sustainable practices to deliver faster and more efficient projects. In an interaction with CW, Rohit Prabhakar, Director - Business Development, shares how the company’s integrated model of ‘Speed-Build’, ‘Smart-Build’ and ‘Sustain-Build’ is redefining construction efficiency, quality and environmental responsibility in India.U-Sphere positions itself at the intersection of speed, sustainability and smart design. How does this translate into measurable efficiency on the ground?At U..

Smart Roads, Smarter India

India’s infrastructure boom is not only about laying more kilometres of highways – it’s about building them smarter, safer and more sustainably. From drones mapping fragile Himalayan slopes to 3D machine-controlled graders reducing human error, technology is steadily reshaping the way projects are planned and executed. Yet, the journey towards digitisation remains complex, demanding not just capital but also coordination, training and vision.Until recently, engineers largely depended on Survey of India toposheets and traditional survey methods like total stations or DGPS to prepare detai..

What Does DCPR 2034 Mean?

The Maharashtra government has eased approval norms for high-rise buildings under DCPR 2034, enabling the municipal commissioner to sanction projects up to 180 m on large plots. This change is expected to streamline approvals, reduce procedural delays and accelerate redevelopment, drawing reactions from developers, planners and industry experts about its implications for Mumbai’s vertical growth.Under the revised DCPR 2034 rules, buildings on plots of 2,000 sq m or more can now be approved up to 180 m by the municipal commissioner, provided structural and geotechnical reports are certified b..