16 December 2015
Sections 45 to 55 are applicable for computation of capital gains.
The same view was held in the case of Neelkamal Realtors and Erectors India Private Limited by Mumbai Bench of ITAT. It was held that stamp duty valuation provisions under section 50C of the Income Tax Act, 1961 are not applicable to sale of flats as stock in trade.
The provisions of section 43CA of the Act providing stamp duty valuation for land or building or both, held as stock-in-trade wef AY 2014-15 prospectively.
The quoting of Section 43CA has risen another query. Seller is a partnership firm. buyer is an individual. Seller has sold a plot to buyer in the year 1987 through an agreement to sale. The plot was kept as stock in trade by the seller. The buyer paid full consideration in installments. The last was paid in 1998. However, the stamp duty was not paid and an agreement was not registered. Currently buyer want to register the agreement by paying stamp duty at current valuation. Whether Section 43CA will be invoked for the Seller? Can the AO demand income tax from the Seller?
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