regarding transfer of allotment of immovable property

[FARIDUDDIN AHMAD]

respected sir, my client got allotted flat in his name in the year 2019 by paying Rs-100 to xyz. registered sale deed was not executed in favor of client by xyz. later in the year 2023 my client sold the same flat to abc for Rs-150, without executing sale deed. the said transaction has been done with the consent of xyz,by transferring the allotment of flat to abc. my question-can this transaction be related to capital gain or income from other sourced or banami transaction.

AI Summary

Flat Sold Without Sale Deed: Is It Capital Gains or Benami? Court Precedents Suggest Capital Gains Since Allotment Date. A client was allotted a flat in 2019 for a nominal fee without a registered sale deed from the original allottee, XYZ. In 2023, the client sold the flat to another party, ABC, with XYZ's consent, transferring the allotment without executing a sale deed. The query concerns whether this transaction should be classified as capital gains, income from other sources, or a benami transaction. A respondent cited court decisions indicating it is a capital gain, with the date of allotment as the acquisition date, referencing relevant legal precedents and circulars supporting this interpretation.