Hi friends... Pls guide me in the following instance...!!!
In the FY 2007-08 (Oct 12, 2007), an individual has received a total sum of Rs.115 lacs for two properties from govt. for compulsory acquisition of land. (Rs.57.5lacs and Rs.58.5 lacs).
In that year he has applied for rural rectification bond for Rs.100 lacs (2 bonds of Rs.50lacs each).
But they have been allotted only one bond (Rs.50 lacs).
The balance Rs.50 lacs has been deposited in SBI Fixed deposit. For the remaining Rs.15lacs he paid capital gains tax and filed the return (but not on due date).
The next Rs.50lacs bond was issued to him during the next financial year (02.06.2008). But in the month of March (26.03.2008) we have given a request to the income tax dept. saying that the bank is not allotting bonds more than Rs.50 lacs for which we got a reply on 04.04.2008 stating that you can go for bond.
The above said bond has been purchased by cancelling the Fixed deposit.
Now the Income tax officials are demanding for capital gains tax for remaining Rs.50 lacs in the FY 2007-08 (note :they have allowed the same as exemption in FY 2008-09 as per our claim through IT return for the year)
Thanks for your time...:):)
CAclubindia
