I sold a property for 15 Lacs in 2006.The purchaser paid stampduty on 25 lacs(market value calculated by stampduty department based on rate derived from ready reckoner,max rate of that zone) on the property.The indexed 1981 value is 8 lacs.Unaware of 50C only 7 lacs were deposited in Rural Electrification Bonds.The IT department is claiming capital gain tax under 50C on the property valued 25 lacs , so additional tax on 25 - 15=10lacs.I have got a valuation report by a goverment recognised valuator stating the property value at 13.5 lacs for the year 2006 on which basis I sold it at 15 lacs.This is the highest rate at which the sale took place in that bulding, as its a Mhada construction with sub standard construction, inadequate space for parking, covered by two sides with a nearby building with less than 10 feet of gap.
The case has gone for an appeal since Jan this year, but no hearing since than.How to find the status of the appeal?
Please guide how to proceed further in this case when it comes for hearing? What additional documents will help me in defending my case? Can someone give me details of cases against/challenging section 50c of the Income tax act in regards to the calculation considered of the stampduty department?
CAclubindia
