|Question And Answer|
|Answered by:||Advocate Shashi Ashok Bekal|
|Tags:||agreement, income from other sources|
|Date:||February 12, 2023|
Does it include a flat which is never constructed by a builder even after execution of agreement ?
Word “Recd” under this section means what ?
This is a debatable issue. As you rightly pointed out the word used is “received” and what the assessee has, in this case, is a right in the immovable property and not the immovable property. Right in an immovable property is not a “property” for the purpose of section 56(2)(x) of the Income-tax Act, 1961 (Act) and it cannot be argued to be included within the definition.
For example, section 269 UA(d) of the Act defines “immovable property” and it includes rights in the immovable property, among others for the purpose of Chapter XXC of the Act. Therefore, where the legislature intended to include rights in an immovable property within the definition of immovable property, it has expressly done so. Therefore, the right in an immovable property cannot be considered as “property” for the purpose of section 56(2)(x) of the Act. The said provision can only be attracted when the actual immovable property is received.
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