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Section 43 ca of income tax act

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M.K.Aggarwal

M.K.Aggarwal (Querist)
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20 August 2017 Purchased a shop for Rs 64000 in instalments from a Builder in 1995. Payments were made in cash except two payments of Rs. 9000 by cheque out of total payment of Rs. 64000. The possession was given in 1997. Post possession the property tax is born by me. I have not registered the shop in my name till date. The circle rate of the shop as on date is Rs 10 lakh on which I have to bear the stamp duty for registration of the shop in my name.
The builder wants Rs 3 lakh as likely tax implication due to section 43CA. My query is:
Is the builder will have to pay any tax as the sale consideration of Rs. 64K was already taken by him and receipts were issued in 1995-97.
Is the builder right to seek compensation of tax from me.
Can I approach any authority for the tax exemption if leviable.

Prakash Kochar

Prakash Kochar (Expert)
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21 August 2017 sect. 56(2)(vii) proviso and sect. 43CA(3) of Income Tax Act, respectively for purchaser and seller will help in the situation, If there is agreement and payment is made through Bank, Stamp duty value on the date of agreement can be taken.

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