Co-operative society's mandatory reserve and share capital fixed deposits with banks-interest treated as business income under 80P(2)(a)(iii) deductio...
Income tax reassessment reopening after four years on investigation tip, without s.147 proviso disclosure failure, struck down as borrowed satisfactio...
The dominant issue was determination of the acquisition date/holding period of a redeveloped residential flat for classifying gains as long-term or short-term and consequential denial of exemption under s.54. The tribunal held that rights in the redeveloped flat crystallized on issuance of the allotment letter and subsequent agreement, and redevelopment was a continuation of pre-existing ownership rather than a fresh purchase. Payment of installments for additional area, including the last installment, and construction/possession timelines could not defer the acquisition date, consistent with binding HC precedent on allotment-based acquisition. Since the asset was held for more than 36 months before sale, gains were assessable as LTCG; the STCG addition was deleted and the appeal allowed. - ITAT
The dominant issue was determination of the acquisition date/holding period of a redeveloped residential flat for classifying gains as long-term or short-term and consequential denial of exemption under s.54. The tribunal held that rights in the redeveloped flat crystallized on issuance of the allotment letter and subsequent agreement, and redevelopment was a continuation of pre-existing ownership rather than a fresh purchase. Payment of installments for additional area, including the last installment, and construction/possession timelines could not defer the acquisition date, consistent with binding HC precedent on allotment-based acquisition. Since the asset was held for more than 36 months before sale, gains were assessable as LTCG; the STCG addition was deleted and the appeal allowed. - ITAT
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4816 
Join Channel 
