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Capital gain

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This query is : Resolved

Balakrishnan (Querist)
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29 January 2013 My friend bought one plot in the financial year 2008-09 by SBI Bank Auction for an amount of Rs.10,40,000 and sold the plot on the same day for an amount of Rs.15,00,000/-. The Guideline value for the plot on that day was Rs.23,02,000/-. Now he received a notice from Assessing officer that levy tax on the amount Rs.23,02,000 - 10,40,000 = Rs.12,62,000/- u/s.50C. Is there any provision to reduce tax and whether the tax liabilty fully attract interest u/s.234 A,B,C till date? Kindly help me to resolve the same.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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29 January 2013 On 4,60,000/- he was supposed to pay STCG.
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As the property has been purchased in an auction, the assessee can argue that the stamp duty valuation was on the higher side, and request to get the valuation done by the department valuer.
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