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Purchased of immovable property

06 September 2016

In A.Y.2007-08 Purchased of immovable property with developemnt agreement not yet made and sale deed.but we get possession of property with full considration of Rs.1000000 And also paid stamp duty.it development agreement shown in Return. Then, In A.Y. 2013-14 made sale deed of that property of Rs.7050000. without any considration because considration value received in A.Y.2007-08. but that sale deed does not shown in Return of A.Y2013-14. Then, In A.Y-2015-16 AO sent demand notice pay tax on Sale deed made in 2013-14 Please give me solution??? Why should I pay tax on Rs.7050000. because we are not received any considration in A.Y.2013-14

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6 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (185445 Points)
Replied 07 September 2016

Generally, sale deed is incorporated based on earlier Sale Agreement, with same parties and cosideration. Still you can reply citing the earlier agreement, and the sale deed being only as the complience based on earlier transaction, which was declared in ITR of corresponding year.

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Vaibhav Tekawade (CA) (34 Points)
Replied 07 September 2016

Sir,There is any way out to save the Tax.because Assessee does not received even single rupee considration.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (185445 Points)
Replied 07 September 2016

Was the agreement of PA 2006-07 registered? Any capital gains assessed?

Vaibhav Tekawade (CA) (34 Points)
Replied 07 September 2016

Yes Sir, it was registered Agreement.
No Capital Gains to the assessee

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (185445 Points)
Replied 07 September 2016

Though the provision has been inserted in recent budget that:

by way of a proviso to section 50C(1) of the Act to adopt assessed or assessable value by the stamp valuation authority on the date of agreement for the purposes of computing full value of consideration for such transfer provided the amount of consideration, or a part thereof, has been received by way of an account payee cheque or account payee bank draft or by use of electronic clearing system through a bank account, on or before the date of the agreement for transfer.

So, I would suggest to consult any tax lawyer in this matter.