MR.X HAD A RENTED COMMERCIAL PROPERTY AT SANTACRUZ OF AROUND 1000 SQ FEET + 2000 SQ FEET OF OPEN PLOT, HE WAS BEING APPROACHED BY A BUILDER TO VACANT THE PLACE AND IN EXCHANGE HE WILL RECEIVE THE RESIDENTIAL PREMISES OF AROUND 600 SQ FEET ON OWNERSHIP BASIS ON THE SAME PLOT WHERE NEW RESIDENTIAL BUILDING WILL BE CONSTRUCTED.
MR.X AGRRED TO THE OFFER AND HE HAS VACATED HIS PREMISES AND AGAINST WHICH HE HAS BEEN ALLOTTED A RESIDENTIAL PREMISES AS AGRRED. HE ALSO PAID STAMP DUTY AND REGISTRATION CHGS AS PER THE RULE.
NOW HIS CASE WAS SELECTED FOR SCRUTINY AND THE OFFICER IS OF A OPINION THAT THERE WILL BE LONG TERM CAPITAL GAIN OF SURRENDER OF TENANCY RIGHTS AND VALUE WILL BE DETERMINE ON THE BASIS OF STAMP DUTY VALUE OF COMMERCIAL PROPERTY . WE ALSO ARGUED THAT HE HAS PURCHASE THE RESIDENTIAL FLAT AGAINST IT, BUT THE OFFICER IS SAYING THAT VALUE OF RESIDENTIAL PREMISES IS LOWER AND VALUE OF COMMERCIAL PREMISES IS HIGHER SO HE WANT TO TAX ON THE DIFFERENCE.
PLEASE GIVE YOUR VALUABLE SUGGESTIONS AND ARGUMENTS
CAclubindia
