17 September 2009
ONE OF MY CLIENT (PARTNERSHIP FIRM) HAS PURCHASED OPEN PLOT AT GIDC COSTING 30 LACS FOR TEXTILE BUSINESS PURPOSE, AFTER 1.5 YEAR THEY DIDN'T DONE ANY BUSINESS AND NOW THEY WANT TO SALE IT OUT THAT OPEN PLOT? NOW MY QUESTION IS... 1) WHETHER INTEREST ON PARTNERS CAPITAL WAS ALLOWED AS A BUSINESS EXPENSES OR ADD TO COST OF PLOT, AS NO BUSINESS TRANSACATION WAS TAKEN PLACE?
2) SALE OF OPEN PLOT WAS BUSINESS INCOME OR SHORT TERM CAPITAL GAIN?
3) MAIN QUESTION IS, ACCORDINGLY STAMP VALUATION, THE VALUATION BECOME 1.10 CRORE AND MY CLIENT WANTS TO MAKE AGREEMNTS OF RS.40 LACS ONLY? IS THERE IS ANY PROVISION OF SCRUTINY NORMS?
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