TaxTMI 
TaxTMI 
2014 (12) TMI 264
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....llotment letter issued by the builder of the flat is to be considered as the date of acquisition of the property under Section 2(42A) of the Income Tax Act? 2. Whether on the facts and in the circumstances of the case for the purpose of computing holding the period of the property the date of allotment letter issued by the builder of the flat is to be considered or the date of delivery of possession of the flat is to be considered?" 2. The assessment in this case relates to the assessment year 2009-10. The assessee had purchased the undivided share of land of 2150 sq.ft. out of a large extent of 4 grounds and 400 sq.ft. situated in S.Nos.2766 and 67, RS No.1570/4 at No.1, Binny Road, Chennai. Prior to the purchase of this undivided share ....
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....d order of the Commissioner of Income Tax (Appeals) and taking note of the two decisions of the Punjab and Haryana High Court, namely, 363 ITR 54 (Mrs.Madhu Kaul v. CIT) and 344 ITR 501 (Vinod Kumar Jain vs. CIT) and also on the basis of Circular No.471 dated 15.10.1986 came to hold that the date of allotment of the flat has to be adopted as date of acquisition of the immovable property when it comes to acquiring a flat from the promoter of the flat by way of executing construction agreement and not the date of the sale deed for purchase of the relevant undivided share in land. Accordingly, the Tribunal confirmed the order of the Commissioner of Income Tax (Appeals), dismissed the appeal filed by the Revenue. Aggrieved by the said order of ....
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.... an agreement with the owner of the land for acquiring 40% of undivided share in the land on which the building "Ganeshram" was to be constructed well before 22.02.2005. (c) The builder has nominated the 'allottee' being the assessee to purchase 2150 sq.ft., of undivided share in land described in Schedule-A. (d) The sale consideration for the land was to be paid directly to the landlord on the purchase of the 2150 sq.ft., of undivided share in land while as construction cost of Rs. 81,68,811/- has to be paid to the builder. (e) Various rights and duties of the allottee and the builder were also mentioned in the agreement." 7. On the basis of the above admitted facts, the Tribunal placed reliance on the decision of the Punjab an....
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.... the Tribunal in paragarph 7.1 of the order, holding that the date of allotment of the flat to the assessee by the promotor should be adopted as the date of acquisition of the immovable property. In the present case, the right to the property flows from the date of agreement with the builder, viz., 22.2.2005. Over a period of time payments have been made and the transaction was concluded in accordance with the terms of the agreement by registering the Undivided share in land and handing over the flat. Therefore, the assessee had a right consequent on the agreement dated 22.2.2005 in respect of the property sold by the assessee on 10.4.2008. Therefore, it exceeds the period of 36 months and the assessee has rightly claimed the benefit of lon....
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....Delhi Development Authority amounts to purchase or its construction by the Delhi Development Authority on behalf of the allottee. Under the Self-Financing Scheme of the Delhi Development Authority the allotment letter is issued on payment of the first instalment of the cost of construction. The allotment is final unless it is cancelled or the allottee withdraws from the Scheme. The allotment is cancelled only under exceptional circumstances. The allottee gets title to the property on the issuance of the allotment letter and the payment of instalments is only a follow-up action and taking the delivery of possession is only a formality. If there is a failure on the part of the Delhi Development Authority to deliver the possession of the flat ....