Sec 50C Stamp Valuation

Tax queries 762 views 6 replies

Parshu

CA Final

84 Points Posted on 11 December 2010

Dear Friends can anybody help me out from the following?

An Assesee has sold agricultural land(long term) for 1.2crores in the year 2007-08 by giving Power of Attorney to Agent. The agent has sold the land to company(purchaser) and registered it with a Stamp Value of Rs.3.2crores as Commercial land(which was truly an agri land as on the date of sale).The assesee has paid Capital Gains tax on 1.2crores in the Asst Yr 2008-09.

Now scrutiny has came to assessee and Assessing Officer is demanding to pay tax on Rs.2crores also (i.e difference), which is not fair because the agent has not told assessee anything regarding the Stamp Valuation and Conversion of agricultural land into commercial land.The assessee has not gone through the Sale deed at the time of executing and hence was not able to detect the undisclosed part of the sale deed. The Company(purchaser) has taken undue advantage of power of attorney given to holder by assesee and it seems they increased the value of land by this fraudulant method.

Can anybody suggest, who has to borne the tax liability?.Quote case law if any

Replies (6)

JAYANTA ROUTH

SERVICE

31 Points Posted on 11 December 2010

he is liable to pay Income tax on the amount he has received from the company. The govt. land valuation is an notional value (sometimes it is higher and sometimes it is lower than the market value) and govt charged stamp duty on their valuation

Guest

ya agree with jayanta

Guest

U will have to pay tax on the difference , also u can refer to valution officier u/s 50C . A case if filed against the agent it will become a civil case . if valution officier gives a value above stamp value then stamp value will be considered for payment of tax, and if is valued less than 3.2 cr then u have to pay tax on that amount and that will be binding on the officier.