Benefit under capital gain
This query is : Resolved
30 September 2015
Dear Experts
Greetings
My father is not PAN holder. He has taken 4000 sq ft open plot in 1985 on 99 years lease from Agricultural Market Committee to run a business General Merchant and Commission agent.
He has made construction (not RCC) in 1985 cost Rs. 30000/- Appx
In 2000 he has demolished Old construction and new RCC construction in 875 Sq ft area is done Cost Rs. 320000/- Appx
Being small scale businessman and lack of knowledge of taxation he has not applied for PAN. Also his Income was never taxable / there was not any transaction where PAN is mandatory.
He has transferred his open plot and Commercial shop cum godown to one Person for Rs. 1140000/- in cash and full amount is utilised to purchase residential flat in his son's name
He or his family does not own any house other than mentioned above
He is not having any source of income and fully dependent on his Son.
ITO has rejected exemption under section 54F of capital gain as flat is purchased on Son's name and send demand Notice for Rs. 281740/-
Pls provide best solution.
Greetings
My father is not PAN holder. He has taken 4000 sq ft open plot in 1985 on 99 years lease from Agricultural Market Committee to run a business General Merchant and Commission agent.
He has made construction (not RCC) in 1985 cost Rs. 30000/- Appx
In 2000 he has demolished Old construction and new RCC construction in 875 Sq ft area is done Cost Rs. 320000/- Appx
Being small scale businessman and lack of knowledge of taxation he has not applied for PAN. Also his Income was never taxable / there was not any transaction where PAN is mandatory.
He has transferred his open plot and Commercial shop cum godown to one Person for Rs. 1140000/- in cash and full amount is utilised to purchase residential flat in his son's name
He or his family does not own any house other than mentioned above
He is not having any source of income and fully dependent on his Son.
ITO has rejected exemption under section 54F of capital gain as flat is purchased on Son's name and send demand Notice for Rs. 281740/-
Pls provide best solution.
30 September 2015
Apply to the concerned Commissioneer of Income Tax for grant of relief. u/s 264, stating the facts in clear manner.
30 September 2015
Demand Notice issued u/s 156 and assesment done u/s 144 of INcome Tax Act
30 September 2015
so? What is your query now?
Apply to commissioneer of income tax. Attach the computation of capital gain with that as well.
Apply to commissioneer of income tax. Attach the computation of capital gain with that as well.
30 September 2015
In Assement order ITO has mentioned to make appeal to Commissioner of Income Tax Appeals in form 35.
In form 35 what to be mentioned in Statement of Facts and Grounds of appeal.
In form 35 what to be mentioned in Statement of Facts and Grounds of appeal.
30 September 2015
Since you are claiming that your father does not have PAN, his income was never taxable, small scale businessman, lack of knowledge, full value of consideration received in cash, purchased flat in the name of son etc etc.....
Hence make a request application to CIT for revision petition rather than APPEAL.
Hence make a request application to CIT for revision petition rather than APPEAL.
30 September 2015
Noted
Is there any time line to submit application to CIT for revision petition
Is there any time line to submit application to CIT for revision petition
30 September 2015
no any time limit. Make sure the assessee goes personally to the office. Avoid taking any learned person with you. You innocence is your ASSET.
See the amount involved in capital gain is small. 320,000 after indexation might get inflated.
Sale value is 11,40,000
The gain is invested but in son's name
See the amount involved in capital gain is small. 320,000 after indexation might get inflated.
Sale value is 11,40,000
The gain is invested but in son's name
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30 September 2015
If CIT rejects our application then can we make appeal to Commissioner Appeal as last date of Appeal is 04.10.2015
30 September 2015
Please try to understand that from whatever facts disclosed by you in the above QUERY, you have NO GROUND of APPEAL. Your side is WEAK. Ignorance of law is NEVER regarded as valid excuse, please emphasize that thought within yourself.
Revision petition can help you because your case appears to be GENUINE.
On top of that you want to go for appeal...make it before 4/10/2015 and then proceed to 264
Revision petition can help you because your case appears to be GENUINE.
On top of that you want to go for appeal...make it before 4/10/2015 and then proceed to 264
30 September 2015
Further you could have claimed improvement cost , before 8 years , as its not possible to verify now . that option was there before filing the ROI
30 September 2015
I do agree our side is weak. Our ignorance of law is out frustration / being aggrieved as buyer has purchased in Cash for Rs. 1140000/- neither shown in his books of accounts nor in Return also he sold the same within 2 years for Rs. 21 lacs without paying any tax and we were getting notices by ITO
30 September 2015
yehi india he, tumne return file kiya to ab tax bhi bharo, warna koi puchta bhi nahi he.
30 September 2015
That is why resort to 264.
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