TaxTMI 
TaxTMI 
2014 (2) TMI 1117
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....tances of the case, the orders annexure P-1, P-2 and P-3 are legally sustainable? (ii) Whether in the facts and circumstances of the case, the capital gains arising in the instant is long term capital gain or short term capital gain? (v) Whether in view of correct interpretation of provisions of Section 2(29A); Section 2(29B); Section 2(42A); Section 2(42B) and Section 2 (47)(ii) of Income Tax Act, 1961, the capital gain arising in the present case can be termed as long term capital gain?" The appellant filed a return of income declaring a net taxable income at Rs.60,830/-. The return was selected for scrutiny. The assessee's claim for treating Rs.2,38,609/- received from sale of flat no.421, Sector 44-A, Chandigarh, as a long ....
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....essee in ITA NO.140 of 2000 (Vinod Kumar Jain v. Commissioner of Income Tax, Ludhiana and others), decided on 24.09.2010. Counsel for the revenue per-contra submits that mere allotment and or payment of the first installment without identification of the flat or delivery of possession has been rightly held not to confer any right vis-a-vis flat no.421, Sector 44-A, Chandigarh, which was allotted to the assessee, on 30.11.1988. It is further submitted that the allotment letter could be cancelled at any time and it does not confer any right in any specific unit but merely confers a right to be allotted a unit. The definition of transfer contained in Section 2(47) of the Income Tax Act, 1961 has to be read against the assessee and, therefor....
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....count of sale thereof would constitute long term capital gain. 12. It would also be advantageous to refer to Circular No. 471, dated 15.10.1996 [162 ITR (st.) 41] issued by CBDT on which heavy reliance has been placed by the assessee whereby instructions have been issued regarding treatment of capital gains tax in case of a flatpurchased under Self- Financing Scheme. It reads thus:- "CIRCULAR NO. 471 Capital gains tax- Whether investment in a flat under the Self-Financing Scheme of the Delhi Development Authority would be construction for the purpose of ss.54 and 54F of the IT Act, 1961. 15/10/1986 CAPITAL GAINS SECTIONS 54, 54F. Secs. 54 and 54F of the IT Act, 1961, provide that capital gains arising on transfer of a l....
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.... the above circumstances, the inference that can be drawn is that the Delhi Development Authority takes up the construction work on behalf of the allottee and that the transaction involved is not a sale. Under the Scheme, the tentative cost of construction is already determined and the Delhi Development Authority facilitates the payment of the cost of construction in instalments subject to the conditions that the allottee has to bear the increase, if any, in the cost of the construction. Therefore, for the purpose of capital gains tax, the cost of the new asset is tentative cost of construction and the fact that the amount was allowed to be paid in instalments does not affect the legal position stated above. In view of these facts, it has b....