Dear Friends can anybody help me out from the following?
An Assesee has sold agricultural land(long term) for 1.2crores in the year 2007-08 by giving Power of Attorney to Agent. The agent has sold the land to company(purchaser) and registered it with a Stamp Value of Rs.3.2crores as Commercial land(which was truly an agri land as on the date of sale).The assesee has paid Capital Gains tax on 1.2crores in the Asst Yr 2008-09.
Now scrutiny has came to assessee and Assessing Officer is demanding to pay tax on Rs.2crores also (i.e difference), which is not fair because the agent has not told assessee anything regarding the Stamp Valuation and Conversion of agricultural land into commercial land.The assessee has not gone through the Sale deed at the time of executing and hence was not able to detect the undisclosed part of the sale deed. The Company(purchaser) has taken undue advantage of power of attorney given to holder by assesee and it seems they increased the value of land by this fraudulant method.
Can anybody suggest, who has to borne the tax liability?.Quote case law if any
CAclubindia
