Capital Gain

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This query is : Resolved

Akshay Hegde (Querist)

07 March 2009 Assessee sold land for a consideration.
in addition to consideration buyer agreed to give 2000 sq ft space to seller, in constructed building, in concessional price.
Is price above concession rate is taxable as capital gain? is any case law to support it?

K V Subba Rao

K V Subba Rao (Expert)

08 March 2009 Yes, if it is for academic interest

Akshay Hegde

Akshay Hegde (Querist)

09 March 2009 Sorry sir, i didn't get you, can you just elaborate it?

K V Subba Rao

K V Subba Rao (Expert)

14 March 2009 Consideration can be in cash or kind or in any other form. It depends on terms agreed to between Parties.

I feel, Sale Consideration in the instant case will be aggregate of the following:

(1) Consideration paid by Buyer

(2) Normal Price for which Apartment admeasuring 2000 sft is sold by Buyer (of Land)to others (as per Sale Deeds) LESS Concessional Price charged by Buyer (of Land) to Seller (of Land)

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