Q. Benani act and circle rate

Question

One of our client purchased one flat in rajendra place in 2005 for rs. 6 lac, now he wants to sell this property on POA with agreement to sell, not registered.

The circle rate of the same is rs 70 lacs, the property dealers are advising him to sell the same on agreement to sell without registered for rs 25 lacs.

Your Opinion required on 3 points

1. Whether this transaction will be covered under benami act

2. Whether sec 50C for circle rate will be applicable

3. Sec 56 is applicable to buyer ?

Answer 1

Dear Mittal Saheb

Benami.. may not be.. but s. 50C & s. 56 both would be applicable

Regards

CA. Pramod Jain