06 December 2016
Hi, I entered into a joint development agreement in 2012. The property is jointly held by me and wife. Recently there was a income tax raid on the builder and as a result of that income tax department has sent me a notice "summons to assessee u/s 131" to produce documents related to joint development agreement, returns and bank statements since 2012. This summons is dated 25/11/2016 asking me to be present in hyderabad by 2/12/2016. Else a penality of 10000. This was sent to my address in bangalore. I was out of town from 24/11/16 till 5/12/16. This speedpost was received by my neighbour on 2/12/2016. I gathered it yesterday i.e 5/12/16. I have a torn ligament when I was out of town and going for a surgery tomorrow. So myself or my wife will not be able to go to hyderabad in near future. What should I do? I got the contact number of AO from builder and tried calling him. He is not pickingup. Background of case is: I was waiting for the builder to hand over my share of apartments before paying capital gain tax. I know there is lot of confusion on deemed capital gain tax. But then builder delayed for 2 yrs on approvals and still not complete. On advice from CA, was informed that no one is paying as on date of agreement and paying upon possession. What should I do ?????
07 December 2016
You have two query 1st you are not being able to honor the summon personally and 2nd offering capital gain for taxation. reply to 1st: You just authorize your CA to represent your case and write a request letter giving all the details of your present medical condition supported by medical documents etc... I am sure AO will accept this.
Reply to 2nd: Generally capital gain is required to be offered for taxation as and when you transfer the possession to the builder. However, it depends on the agreement and its type.
CAclubindia
