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

This query is : Resolved

AMIT (Querist)
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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)
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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)
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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)
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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)
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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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