Tax liabilities in case of purchase of property
This query is : Resolved
31 August 2013
dear sir,pl gide me...
whether purchaser is liable to pay tax for different between apparent consideration and value from stamp valuation authority u/s section 50 c of incometax.where the actual consideration is less than the valuation done by SVA ?
whether purchaser is liable to pay tax for different between apparent consideration and value from stamp valuation authority u/s section 50 c of incometax.where the actual consideration is less than the valuation done by SVA ?
31 August 2013
yes the difference shall be included as income from other sources for the purchasor if sec 50C is applicable.
31 August 2013
thank u sir but,i have found from link /taxguru.in/income tax/section 50c-tax-provisions-assessment case laws as stated balow:-
pl refer and reply.....
SECTION 50C CAN BE INVOKED ONLY IN THE CASE OF TRANSFEROR AND NOT IN THE CASE OF TRANSFEREE –
Since Section 50C modifies sale consideration and that too for the purpose of computation of capital gains, it cannot be extended to operate in respect of computation of income under other heads for other purposes. Therefore, difference between apparent consideration and valuation done by the SVA cannot be treated as undisclosed investment in the hands of transferee. Operation of legal fiction is confined to sale consideration only. The Assessing Officer has to independently show that transferee has paid something over and above the apparent purchase consideration in the sale deed. This has to be proved independent of application of Section 50C which cannot he resorted to for any assistance for presuming that something over and above has exchanged hands and, therefore, there would be an undisclosed investment taxable under Section 69 or under Section 69B (ITO v.Venu Proteins Industries (2010) 4 ITR (Trib)602/195 Taxman 14 (Ahd) (Mag) , CIT v.Chandni Bhuchar (2010) 323 ITR 510 / 191 Taxman 142 (Punj & Har.) , IO.V.Harle Street Pharmaceuticals Ltd. (2010) 38 SOT 486 (Ahd.).
pl refer and reply.....
SECTION 50C CAN BE INVOKED ONLY IN THE CASE OF TRANSFEROR AND NOT IN THE CASE OF TRANSFEREE –
Since Section 50C modifies sale consideration and that too for the purpose of computation of capital gains, it cannot be extended to operate in respect of computation of income under other heads for other purposes. Therefore, difference between apparent consideration and valuation done by the SVA cannot be treated as undisclosed investment in the hands of transferee. Operation of legal fiction is confined to sale consideration only. The Assessing Officer has to independently show that transferee has paid something over and above the apparent purchase consideration in the sale deed. This has to be proved independent of application of Section 50C which cannot he resorted to for any assistance for presuming that something over and above has exchanged hands and, therefore, there would be an undisclosed investment taxable under Section 69 or under Section 69B (ITO v.Venu Proteins Industries (2010) 4 ITR (Trib)602/195 Taxman 14 (Ahd) (Mag) , CIT v.Chandni Bhuchar (2010) 323 ITR 510 / 191 Taxman 142 (Punj & Har.) , IO.V.Harle Street Pharmaceuticals Ltd. (2010) 38 SOT 486 (Ahd.).
31 August 2013
then u can rely on this case law.
31 August 2013
ok thanks alot sir.....have a good day
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