Capital Gain

[Reshma kochar]

Dear Experts,

Please share your views in case of Capital Gain whether date of booking or date of possession is taken as date of acquisition??

Please refer some latest case laws too.

Regards,

Reshma

[DEV KUMAR KOTHARI]

For capital gains 'the date of acquisition' and 'the cost of acquisition'  of capital assets are important.. Date of booking is only  the date of to acquire some rights as a buyer in terms of contract/ booking. Acquisition  of property will be  complete  only when possession of property  is received.

In case of transfer of contractual rights (and not property). the date of agreement may be relevant. In such cases transfer of contratual rights should be before taking over  possession. Once possession is taken, property is acquired, and to that extent rights in contract are reduced, thoug some rights may still be available.

[Reshma kochar]

Thanks Sir,

I read so many cases where it says that date of booking will be considered as date of acquisition not the possesaion date. like P&H high court judgement in Vinod kumar jain's case.

Please clarify the same...

Regards,

Reshma

[DEV KUMAR KOTHARI]

Please send full citation of judgment of P & H High Court, I could not find it in search. This may be in context of peculiar facts or some other context.

 

Date of booking may be considered as date of investment  in property for the purpose of dedcutions for reinvestmetn etc. but not for computation of capital gain on sale of property itself.

With respect, I  differ to view that date of booking will be date of acqisition. At the time of booking property is not even ready, so how it can be acquired.Date of allotment of ready flat can be  considered as date of acquisition though registration took palce lateron.

[Reshma kochar]

Thanks Sir,

I refer P & H high court decision in Vinod kumar Jain V/s CIT  (2010 (9) TMI 850 - Punjab and Haryana High Court )

Please clarify on the same.

Regards,

Reshma 

AI Summary

Date of acquisition: possession or allotment normally governs capital gains treatment, booking reflects contractual rights only. The date of acquisition for capital gains is ordinarily the date of allotment or possession of a ready property; booking establishes contractual rights but does not amount to acquisition for capital gains computation. If only contractual rights are transferred, the agreement date may be relevant. Booking may be recognised for investment or reinvestment deduction purposes, but that does not convert booking into the acquisition date for computing capital gains.