Income that can be deemed by ao u/s 56(2)(vii)

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This query is : Resolved

AMIT (Querist)

13 December 2014 Mr. A purchased land from Mr. B.

Stamp Duty Value = 13.5 lacs
Sales = 12.5 lacs

*Stamp on purchase paid by Mr. A = 95000

56 (2) (vii) = 13.5-12.5 = 1 lacs
OR
=13.5-12.5+95 = 5K

CA VISHWAKEERTHI.P.S.

CA VISHWAKEERTHI.P.S. (Expert)

14 December 2014 Consideration i.e., 12.5 lacs .

So taxable under the other source of income will be the Rs. 1 lacs.

AMIT

AMIT (Querist)

14 December 2014 Sir,

But Mr. X had also paid Rs. 95000 thousand as stamp duty.
It will have no impact in 56(2)(vii) & why ?

HUZAIFA HUSSAIN

HUZAIFA HUSSAIN (Expert)

14 December 2014 Mr. vishwakeerthi is right. For the purpose of section 56(2)(vii), the value adopted for charging stamp duty is considered, which in your case is Rs.1.00 lakhs(13.5 - 12.5).

The stamp duty of Rs.95000/- is the duty you have paid on value 13.5 lakhs.

CA VISHWAKEERTHI.P.S.

CA VISHWAKEERTHI.P.S. (Expert)

14 December 2014 You get the benefit of Rs. 95000/- when you sold that assets i.e., you can claim the expenses or cost of acquisition when you sold the assets . Because you are not allowed to claim the expenses now under the provision of 56(2)(vii) .

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