Whether sec56(2) applicable on registration of property in 2

Yash Sanghrajka (Querist) 17 November 2020 This query is : Resolved
Respected sir/ madam,
i had bought a residential property in june 2010 with a letter of allotment for the same dated 06/06/2010, after which the said property fell into litigation and was finally registered on june 17, in the period between payments had been made to the builder as per the allotment letter. Now income tax department has opened my file for scrutiny and is telling me that the difference in the amount as on 2010 and 2017 of the SVA will be charged under sec56(2) of the act , they are also asking for registered sale deed of 2010 which i do not have as no such deed exists i only have the letter of allotment from the builder , so what would my remedies be in this case?
Thank you for your replies and help

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Quick Summary

A property owner purchased a residential property in 2010, receiving a letter of allotment. Due to litigation, the property was only registered in 2017. The Income Tax Department is seeking to apply Section 56(2) of the Act to the difference in the property's value between 2010 and 2017, despite the absence of a 2010 sale deed. The owner is seeking guidance on their legal remedies and how to address the tax department's claims.

Isaac Gabriel (Expert) 17 November 2020
As you have stated, the sale deed is a non existing document which cannot be insisted by tax authorities.However how the difference from 2010 to 2017 is assessed?. Better put this query in CAClub for guidance.

kavksatyanarayana (Expert) 17 November 2020
Consult a local CA or put a query to CAclubofindia.

Rajendra K Goyal (Expert) 18 November 2020
It seems the Registration deed did not mentioned correct position in the sale deed.

Engage some competent lawyer in taxation and place actual position before the authority. If no positive result go for appeal.

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