Q. > Please Help: Applicability of Section 56(2)(vii)(b)

393 views • Question added Aug 02, 2014 • Income Tax • By dinesh k. jangid

: "A" is a member of co operative housing society . he has paid in cash rs 48000 to the society for the allotment ( purchase) of residential plot in June 2012. he was issued allotment letter with plot no and given possession of the plot.The stamp duty valuation of the property is now 19 lacs and the registration is taking place as on today i.e. after the applicability of sec 56(2) (vii) of teh Income tax act which states that " receiving" any immovable proerty at a value less than stamp duty valuation, the difference in value will be treated as income from other sources." my querry is that whether allotment letter amount to the receiving of the property and the date of registration is not relevant for the purpose of above section. since the original payment is made in cash to society , the transaction is not covered by explanation. please advice about the applicability of sec 56 2 vii of the act on this transaction. thanks and regards