Sale of property
Querist :
Anonymous
(Querist) 26 November 2011
This query is : Resolved
My friend sold some property under GPA to a promoter during 2006 and the entire consideration was offered for tax.subsequently the promoter developed and built flats and sold the same using my friends GPA and Pan no. ( this is not a joint venture) without my friends knowledge. Since the promoter is not co operating to divulge the details the assessing officer may impose tax on entire sale done by the promoter. Kindly suggest a remedy to get out of this tricky situation
Vineet
(Expert) 26 November 2011
Tricky situation. Your friend has to stand by the GPA. Does it provide for handing over posession of property for consideration. If yes, the property has been transferred as far as Income Tax is concerned.
Regarding further sale by Builder using PAN of your friend, the same amounts to fraud. Please consult a local lawyer, who will suggest you for legal action to be contemplated so that you can prove your bonafide when taxman comes calling.
Querist :
Anonymous
(Querist) 27 November 2011
Thanks for the reply .Yes he handed over the property for consideration
