When 56(2)(vii) gets attracted?

This query is : Open

CA. Abhishek K. Pandey (Querist)
Follow

10 April 2012 If I give a loan of Rs. 20 Lakhs to my friend B and B afterwards give me jewellery in lieu, worth Rs. 35 Lakhs. Then, the excess 15 Lakhs is CG or IOS u/s 56(2)(vii).
In book its given, IOS, bit why not CG??

CA Kishore Tallam

CA Kishore Tallam (Expert)
Follow

10 April 2012 The difference is nothing but interest income and it is chargeable under head other sources. It will not be capital gain since u have not transferred any of ur capital asset. Its just a recovery of loan.

CA. Abhishek K. Pandey

CA. Abhishek K. Pandey (Querist)
Follow

10 April 2012 On the other hand, I can say, that I have relinquished my right of receiving the amount in exchange of jewellery. It is a transfer and thus, capital gain.

CA Raghav Goyal

CA Raghav Goyal (Expert)
Follow

11 April 2012 This is the specific case of IOS after introduction of sec. 56(2)(vii).

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Nikhil Vyas

Navneet Pratap Singh

Rajesh Surapaneni

arya yashu

Amit

Subscribe Now

When 56(2)(vii) gets attracted?

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Accountant

GST CONSULTANCY

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

CA Final