Residential property

Can anyone please guide what effect to be given for below trasaction:

One individual was living )or running business in a shop in a rented premises (pagadi system the building was redeveloped by buider and a flat or shop is allotted to him in new building and now the agreement is made for owenership flat or shop.

So what accounting entry to be pass in the books of individual getting owenership flat or shop free of cost and what effect to be given in IT Return??

Thanks in Advance