Finance Act 2010 - Example on Sec 56(2)(vii)

Imp Example ofSec56(2)(vii)

Mr.AD,a dealer in shares,recvd WITHOUT Consideration frm his friend Ms.DA-

1.Cash-75000 on Annivrsry 7.1.2011

2.Bullion,FMV-60000 on Bday 19.06.2010

3.Land on 1.7.2010,Stamp Value on that date-5Lacs. Mr.B purchased land inApril2005

Mr.AD purchased,from Mr.AK share broker,1000shares of SABC Ltd@400/-each on19.06.2010,FMV of which was600/-each on that date. Mr.AD sold it in course of his business on23.06.2010

On1.11.2010,Mr.AD took possession of Flat booked 2yrs back@20Lac.Stamp Value of property on1.11.2010 is 32Lacs.

On1.3.2011,he sold the land for 7Lac

Compute IOS &Capital Gain for AY2011-12.