Can proprietor sell to son

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 February 2013 Dear Sir,
Can a builder proprietor sell a couple of his flats to his sons? There is already family partition. Is is ok as per hindu succesion laws? will or will not I.T. Dept frown upon this.Can it say that what was the need for proprietor to sell something which after his life was afterall his sons property.

Thanks!

CA Suraj Lakhotia

CA Suraj Lakhotia (Expert)
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12 February 2013 As long as it is a genuine business transaction there is no need to worry.

Querist : Anonymous

Querist : Anonymous (Querist)

12 February 2013 Dear Sir,
Its a genuine business transaction with consideration paid by the son to proprietor father thru a/c payee cheques. only that proprietor father offered a discounted price of Rs 300/ sqft less than the market price.
Initially the payments from the son was in the form of unsecured loan to his proprietor father without written loan agreement .Later both thought it prudent to convert the unsecured loan into Agreement to sell.
Kindly advise if the above is or is not a genuine business transaction.
THANKS!

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CA Suraj Lakhotia

CA Suraj Lakhotia (Expert)
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12 February 2013 Discounts can be passed in normal course of business and it is the business to decide quantum of deduction. Unless you purchased the property at throw-away prices, there should not be any issue.

Querist : Anonymous

Querist : Anonymous (Querist)

12 February 2013 Dear Sir,
I am fully satisfied with ur answer and rather appreciate it.
Thanks!