| Question And Answer | |
|---|---|
| Subject: | Sec. 56(2)(viib) |
| Category: | Income-Tax |
| Querist: | Prakash |
| Answered by: | Advocate Shashi Ashok Bekal |
| Tags: | 50C, Agreement to sale |
| Date: | May 14, 2023 |
Whether provisions of Sec. Sec. 56(2)(vii) (b) are applicable for Registered Agreement to sale between the land owner and developer. Since the word used in section are ” property means the following capital asset of the assessee namely :-
immovable property being land or building or both………
Can assessee context the issue on the ground that by executing agreement to sale , assessee has got the rights in property but not the immovable property by drawing the inference from various decisions in the context of 50C, where in it is held that the provisions of Sec. 50C are not applicable for rights in land or building .
pl guide
This is a debatable issue and worth contesting. For example, in section 269UA of the Act, property rights are considered immovable. Therefore, the legislature in its wisdom used defined property separately for sections 56(2)(x) of the Act and section 269UA of the Act. Therefore, the right in the property cannot be considered as property for the purpose of section 56(2)(x) of the Act.