Appeal against order passed
singh
(Querist) 24 June 2014
This query is : Resolved
sirs,
I am an NRI.(merchant navy)I had sold my plot for Rs 13,50,000.The purchaser registered the plot at Rs 4,00,000 which was the govt.circle rate at that time as he wanted to save money on registration.
I deposited the entire Rs 13,50,000 in my bank account.
at the time of finalizing the deal i had taken Rs 1,00,000 as a token money and the balance 12,50,000 was paid to me at the time of registration by the purchaser.
In the assessment year 2008-09 Income tax department sent me a notice stating that out of Rs 13,50,000 only Rs 3,00,000 is the amount realized by the sale of plot but the balance Rs 10,50,000 is liable for tax as according to them it is an unexplained income.
They have considered just 3,00,000 and have ignored Rs 100,000 which was an advance received as a part payment of the plot.
They are asking for tax on the amount of Rs 10,50,000.
they taxed me of around Rs 3,50,000 apprx and as i didnt pay that now adding interest to it the amount has come up to Rs 5,00,000 as tax payable.I had requested for installment which they have converted into 6 installments but I wish to make an appeal and request for exemption of all the tax amount as i am not at fault.please help
Devajyoti Barman
(Expert) 24 June 2014
Taxation query..post this in caclubindia.com.
Sankaranarayanan
(Expert) 24 June 2014
Yes how you given entry for the balance amount in your book. Are you receivrd those amount by chequee or cash. How you been depossited the money in bank. Need more clarity
singh
(Querist) 24 June 2014
.
R.K Nanda
(Expert) 24 June 2014
consult tax lawyer.
singh
(Querist) 24 June 2014
sankar sir, I received entire amount in cash...what can be the way out?
uttamtibrewal@yahoo.com
(Expert) 25 June 2014
Mr Singh ....
As the sale proceedings was made for only 4,00,000 lacks so this amount shall be deducted from the amount received ... and rest 9.5 lac is taxable ... you can make appeal for re calculation and request for execption of interest .... it will work ...
for any query do reply back .
krishna mohan
(Expert) 26 June 2014
If you have not reinvested in a housing property explore the same as you may get relief under Capital Gain Tax. Better you approach a practicing CA or Lawyer on Income Tax matters to get due tax relief.
T. Kalaiselvan, Advocate
(Expert) 26 June 2014
You are not supposed to receive the sale consideration amount exceeding Rs. 50,000/- by cash. The transaction should have been by an instrument only. Further, since you have deposited the said amount to your bank account, it will immediately attract the eyes of income tax sleuths. Moreover, since you have requested the department to permit you to pay the tax amount in installments and they too have agreed to your request, you have already committed to have done the offence of evading the tax. Instead you should have gone for an appeal at that time itself. Now in my opinion, your appeal may also not sustain, however consult a local auditor and proceed as per his advise.
Dr J C Vashista
(Expert) 28 June 2014
I agree with experts.
It is a common practice (in India)to pay barest minimum tax accordingly your vendee did it by registering the transaction for Rs. 4 lakh, rest of the 9.5 lakh is black money generated by you for which you should have refused to accept and now you are accountable/answerable to the IT/ Enforcement authorities, beter to get it settled with concerned officials.
If you feel aggrieved by the decision of ITO file an appeal, it is your right.
Suhail A.Siddiqui
(Expert) 28 June 2014
income Tax Act,1961 Capital Gain Tax is chargeable on Minimum Circle Rate, but u had disclosed proceed receipt(consideration of such property received) more then circle rate therefore, Capital gain tax is chargeable on such receipt after providing exemption and expenses incurred on it.
singh
(Querist) 28 June 2014
within how many days can you apply for an appeal...30 days from the receipt of letter or 60 days?
