24 June 2014
sirs, I am an ex-serviceman.(indian navy)I had sold my plot for Rs 13,50,000.The purchaser registered the plot at Rs 4,00,000 which was the govt.circle rate at that time as he wanted to save money on registration. I deposited the entire Rs 13,50,000 in my bank account. at the time of finalizing the deal i had taken Rs 1,00,000 as a token money and the balance 12,50,000 was paid to me at the time of registration by the purchaser. In the assessment year 2008-09 Income tax department sent me a notice stating that out of Rs 13,50,000 only Rs 3,00,000 is the amount realized by the sale of plot but the balance Rs 10,50,000 is liable for tax as according to them it is an unexplained income. They have considered just 3,00,000 and have ignored Rs 100,000 which was an advance received as a part payment of the plot. They are asking for tax on the amount of Rs 10,50,000. they taxed me of around Rs 3,50,000 apprx and as i didnt pay that now adding interest to it the amount has come up to Rs 5,00,000 as tax payable.I had requested for installment which they have converted into 6 installments but I wish to make an appeal and request for exemption of all the tax amount as i am not at fault.please help
24 June 2014
sir,my entire money was used to make margin money for the flat which i had taken on home loan....will the appeal be worth or should i agree and pay of the installments granted by the IT department?
25 June 2014
This entire amount was not shown at all in the income tax. I am in a fix whether to make an appeal stating the facts or pay what is demanded to me.I would also like to know that i have heard that a citizen can claim a waiver in income tax issues once in life time...is it true? can the excess interest charged by the ITO can be asked for a waiver for income tax?
25 June 2014
no it is not true...if you have not reflected the whole consideration in the tax return but have deposited in the bank account, then the AO is correct in treating the same as undisclosed income and has correctly asked for the tax.
However, you can request AO for instalment.
With regards to Appeal part, you may file the same. the relief would totally depend on the CIT(A) to provide you relief. But don't expect the complete waiver.
CAclubindia
