Friends -
I had sold my property in Dec 2010 (AY 11-12) . The capital gains (of about 1 cr) were long term capital gain. I intended to buy a property within 2 years, decided to wait. Hence parked the capital gain funds (50lacs) Capital Account scheme in SBI . Remanining 50 lacs I kept in Andhra Bank in normal account. Reason was , unintentionally i thought the there is a cap of parking 50 lacs in one financial year in capital accounts scheme. (Later I realize that this is applicable to REC/NHAI Bonds) However the intention in parking the funds in 2 PSU Banks was to purchase another property within 2 years.
Now , my case came under scrutiny and due meetings a notice of demand has been issued u/s 156 treating the 50 lacs (NON Capital Gains) funds as income in AY 11-12 along with a notice that a notice u/s 271 can be issued for income concealment.
I am planning to file an appeal
Need advice from experts. Can I do so. and what is the procedure & implications. I understand that probably I erred in parking the funds in Non CAGS account. However the intention was never of income concealment. In fact the Long term capital gains had duly been decalred in AY 11-12
Will seriously appreciate your response , as I have to reply within 30 days.
Thanks
Kapil
CAclubindia
