24 August 2013
Dear Experts, My client had purchased a 10 acre agricultural property in 2004 for Rs.25 lacs and spent on leveling,development, and construction of wall through out etc etc and the total cost of the land came around 47 lacs, and in the year 2007 she sold the property due to some dispute from the villagers to a prospective buyer for an amount of Rs.85 lacs as in where is basis. whereas the registration value as per sub registrar was 1.84 crs. for which the buyer after having negotiated paid 85 lacs in full and got the property registered for the sub-registrar value and paid the stamp duty accordingly. Now my client has been served on a notice u/s 142(1)to produce relevant return of income from 2007-08 onward and pay the capital gains on 1,84 lacs- 25 lacs. The ITo is not ready to accept the sale consideration of Rs.85 lacs at any cost. he says it is done purposely to avoid capital gains. Dear experts kindly advice on the same.
24 August 2013
If it is not rural agriculture land, then the contention of AO is right as the full value of consideration is your case is stamp duty value is full value of consideration not the sale proceed
24 August 2013
DEAR Experts thanks for ur response. actually i want to know if the AO can proceed with the calculation as per the subregistrar guideline value or as per the actual sale consideration recieved by the seller ? and also is an agriculture land subject to capital gains or not ?
CAclubindia
