08 February 2024
Dear Sir, I am farmer and having residential cum commercial plot at my city which is having Municipal Council. The said plot is my ancestral property and I am having 25% share in the said plot (We are four brothers having equal share of 25%). The government valuation of the said plot is Rs. 73,21,000 in year 2017. In the same year, along with my brothers we decided to develop the said plot and made Joint Development Agreement with developer. According to said agreement the developer share is 55% and owners share is 45% and subsequently my share is 11.25%. As per the said Joint Development Agreement the developer paid us Rs. 20,00,000 as refundable deposit (My share is Rs. 5,00,000). However, due to the covid-19 and other reasons the project is delayed and still project is under construction. Recently, I received the notice from income tax Order under clause d of Section 148A of the Income Tax Act, 1961 in which the income tax department asking explanation regarding sale of immovable property amounting 73,21,000. However, we did not do any sale of said property and its joint development agreement. In view of above it is kindly requested that please guide me and how to answer the income tax authority. Regards
CAclubindia
