16 January 2019
Myself a co-owner of a joint family property of 4 bighas of land in kolkata which we have entered into development agreement with one developer on 2013. Till date no development has started on the same land as the plan sanction is pending. Moreover the developer has incurred huge expense to remove tennants which has been adjusted from our share. There are total 35 co-owners with different ratio of shares in the property.We hardly received any consideration barring little non-refundable premium amount during signing of agreement which after propotionate division amongst all shareholder amounts to negligible figures in each hand. From 2016 onwards each assessee related to this property started getting notices from IT dept. On regular intervals U/s 133(6) then u/s 148 , u/s 143(2) , u/s 274 with 271(1)(c) etc. and finally on december 2018 served with an Assessment order mentioning huge amount around 2 crs. As Capital Gain and around 30/40 lacs as incurred tax on same to be deposited within a months time. Though We have not done any transfer of share against any consideration amount to the developer or anyone elae but IT treating it as Deemed Capital Gain and asking to pay tax of huge amount. Request an advice as what to be done to avoid this huge burden of tax though no develoment has yet started in the property as yet.
18 January 2019
This is a disputed area. You'll have to go to the court, more so when the AO has already passed the order. I can provide some guidance, but I'll need to study the agreement.
CAclubindia
