Assessee wins appeal, capital gain computed from 1986 booking date. Decision on August 19, 2016.

The Tribunal allowed the appeal filed by the assessee, directing the Assessing Officer to consider the date of booking in 1986 as the relevant date for the computation of capital gain on the flat. The decision was pronounced in open court on August 19, 2016.

---

---

Issues: Determination of whether the asset transferred is a Long Term Capital Gain or Short Term Capital Gain.

Analysis:
1. The appeal was filed by the assessee against the order of the Commissioner of Income-Tax (Appeals) for the assessment year 2007-08. The primary ground of appeal was that the flat sold by the assessee in Dwarka, New Delhi should be considered a Long Term Capital Asset for tax purposes, whereas the CIT(A) had treated it as a Short Term Capital Asset. The appellant argued that the asset should be taxed as Long Term Capital Gains, citing similarities with a previous case.

2. The main issue revolved around whether the date of booking or the date of final payment should be considered for the computation of capital gain on the flat in question. The Hon'ble Gujarat High Court precedent in the case of CIT Vs. Anilaben Upendra Shah established that the date of allotment, not possession, should be taken into account for determining capital gain. Since the facts were similar and no contradictory evidence was presented by the Revenue, the Tribunal ruled in favor of the assessee. The date of acquisition was considered the first booking in 1986, and possession of the flat was deemed to relate back to 1986 for the purpose of computing capital gain.

3. Consequently, the Tribunal allowed the appeal filed by the assessee, directing the Assessing Officer to consider the date of booking in 1986 as the relevant date for the computation of capital gain on the flat. The decision was pronounced in open court on August 19, 2016.

---