Sec. 56(2)(viib) and agreement to sale

The assessee is an individual engaged in the business of real estate dealings as well as in real estate consultancy. Assessee is also a partner in various partnership firms from which he derives exempt income and also has agricultural income. The assessee had filed his return of income for A.Y. 2016-17 on 01.02.2017 disclosing total income at Rs. Nil. During the year under review appellant had entered into Sathekhat with land owner for purchase of land for a consideration of Rs.. 1,85,00,000/-. Appellant have paid Rs. 1.00 crores against the said “Sathekhat” and balance amount of Rs. 85.00 lakhs to…

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  Difference between Stamp duty and Agreement value is about 5.3% AY 2020-21 being added to Income

In October 2019, the assessee bought a property at a FMV as stated in a valuation report by a CBDT empaneled valuation officer who is also a valuation officer for the Honourable High Court of Calcutta. In the valuation report, it was stated that the Stamp duty value of the property would be about 5.55% higher than the FMV of the property. The assessee proceeded with the agreement of sale on the basis of the valuation FMV in October 2019 and registered the property in March 2020. The Assessing officer now intends to include the difference in Stamp Duty value…

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