Section 43ca and 56

Dont get confused between book entries and calculation of income under PGBP. Enter the actual amount in books only which you have actually paid. But for the calculation of PGBP income 116 lacs is a deemed amount.

THATS WHAT I WANT TO KNOW... IF I ACCOUNT FOR RS 10 LACS AS PURCHASES... AND WHEN I SELL THIS PROPERTY SAY FOR RS 250 LACS , THERE WILL BE PROFIT OF 250-10 = 240 LACS... WHICH IS OVERSTATING YOUR PROFITS.... ISNT IT??? 

see....actually you are again getting confused in two different points.

profit shown in the books can be different from the PGBP income. I think you are assuming that the profit figure shown/calculated in your books will be the income under the head PGBP. But this is not the case.

In books, this may overstate your profits, but when you will file the IT return deemed amount of rs.116 lacs will be considered not the actual 10 lacs.