Welcome to Monday Corner, an initiative from Tax Publishers…
Monday Corner is specially designed to reward the intellectuals like you:
- We will send a Brainteaser on every Monday through email to your inbox and
- You need to send your answer in revert with reasoning by Wednesday at firstname.lastname@example.org
The most suitable reply will be uploaded on our website (www.taxpublishers.in) in Monday Corner along with the photo/credentials of the winner of the week. If, per chance, winner happens to be more than one, the result will be drawn by lottery.
The winner would receive any one of the following books as free gift…
Quiz for the week (20 Mar 2023) :
ABC & Co is engaged in real estate business whose activity was buying vast area of land and developing them in to residential plots with necessary approvals for sale subsequently. As per State regulation, it has to make sale of single piece of developed plot which would be considered by the State stamp valuation authority for the purpose of fixation of stamp duty value for the entire area developed by it. ABC & Co transferred a plot to one partner’s brother for Rs.10 lakhs. The stamp duty value was fixed by the stamp valuation authority @ Rs.15 lakhs which was to be adopted for other plots subsequently. The firm has been admitting income under section 44AD and would continue to do so.
State the consequence of the above said transaction in the hands of firm and the person (partner’s brother) who bought the land. Will your answer be different in case, it is stock in trade for the buyer?