Sale consideration as per Sec. 50C

This query is : Resolved

sreenivasulu reddy (Querist)
Follow

15 March 2008 The assesse is partnership firm engaged in the business of construction of apartments and real estate. During the Financial year 2006-07 they have acquired a piece of land at a cost of Rs. 1,84,00,000 in order to construct a commercial complex. Subsequently, during the financial year 2007-08 they have entered into an Agreement of Sale to sell this piece of land without any construction for a consideration of Rs. 1,92,00,000 and received Rs. 45,00,000 as advance in the month of December 2007.They have registered the Sale Deed in the month of Feb. 2008.By this time the market value of the land for the purpose of Stamp duty was enhanced by the Government and the assesse firm was forced to adopt the market value of Rs. 2,30,00,000 for the purpose of stamp duty.

What is the remedy available to the assessee to avoid the provisions of 50C

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
Follow

15 March 2008 The remeady is available in subsection (2) of 50C. Make a claim that the value at that time of finalisation of agreement was less than the market value now. Then the AO may refer to Valuation officer. If he refuses then only remedy is appeal.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now