Opinion Of Eminent Legal Luminaries On Controversial Issues

Income from other sources- Stamp duty v. Purchase price

QUERY: Whether the Assessing Officer is justified in making addition of difference between Stamp Duty value and purchase price of agricultural land under section 56(2)(vii) of the Act?
ANSWER: This section is opposite of section 50C of the Act. Section 50C is applicable to seller of land or building or both, while this section is applicable to the purchaser of land or building or both.
As per the querist, he has purchased agricultural land which is not a capital asset as per section 2(14)(iii) of the Act. Hence, there is no question of making addition in respect of difference between Stamp Duty value and purchase price, though section covers land or building or both.

Posted in Income-tax

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