Dario Dias (None) 24 February 2010

Income Tax Appeal

Hi,

In October 2006 I sold a flat in Mumbai for 15 Lakhs (Sale deed value).The buyer paid stampduty on 25 lakhs which was the calculated market value by stamp duty department.(calculaed on basis of that CTS not mentioned intheir reckoner so highest in nearby area considered)in.The property was valuated by a goverment recognised valuator and the value as in 1981 was 8 lakhs and 14 lakhs in 2006.Differenc of 7 lakhs was invested in Rural Electification bonds.Under section 50C I am being made to pay capital gain tax on on 25 - 15=10 lakhs.To appeal what documents other than the valuation report should i provide to prove my genuinity?

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Vineet (Director) 25 February 2010

Dear Mr Dias, unfortunately your case is covered by a presumptive section 50C of Income Tax Act wherein with effect from 1-4-2003, the sale value of the property is to be adopted as actual sale value or the value assessed by stamp duty authorities whichever is higher.

You should have requested the Assessing Officer to refer the valuation of property to the Departmental Valuation Officer under section 50C(2) of the Act. If you have made such request and the AO has not acceded to your request, you can take same stand before CIT(A), who can himself refer the matter to valuation officer or direct the AO to do so. The valuation report you possess will help you in substantiating your claim before the CIT(A).

Dario Dias (None) 01 March 2010

Thanks very much for the help

Income Tax Appeal

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