TaxTMI 
TaxTMI 
2001 (10) TMI 13
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....briefly stated, are as under: The assesses is an individual and the assessment year involved is 1983-84. She filed the return of her income on June 23, 1983, showing total income at Rs. 39,756. During the course of examination of the record of the assesses, it was noticed by the Income-tax Officer that she had taken possession of a flat in October, 1981, and the said flat was sold in December, 1982, for Rs. 1,40,000 including outstanding loan of Rs. 30,000. The Income-tax Officer further noted that in her return of income, the assessee had claimed the capital gain as a long term capital gain and had accordingly claimed deduction under section 80T of the Act for an amount of Rs. 14,310. The Income-tax Officer was of the opinion that the cap....
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.... therefore, of the opinion that since the assessee had taken possession in October, 1981, and the date of possession was material for the purposes of effective ownership, it was a case of short term capital gain and should be taxed accordingly. The Income-tax Officer, therefore, subjected an amount of Rs. 42,243 to short-term capital gains tax. The aggrieved assessee appealed to the Appellate Assistant Commissioner. Before the Appellate Assistant Commissioner, the main contention of the assessee was that she had acquired the capital asset on September 7, 1979, and in no case later than November 15, 1979, and, therefore, she was entitled to deduction under section 80T to the extent of Rs. 16,434. It was further contended on behalf of the as....
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....s constructed and acquired within three years prior to the date of transfer in December, 1982, the capital asset in question was a short-term capital asset meaning thereby it was held for less than 36 months. For the relevant assessment year 1983-84, clause (iii) of section 27 of the Act read as under: "(iii) a member of a co-operative society to whom a building or part thereof is allotted or leased under a house building scheme of the society shall be deemed to be the owner of that building or part thereof." With effect from April 1, 1988, the following clause (iiia) was added: "(iiia) a person who is allowed to take or retain possession of any building or part thereof in part performance of a contract of the nature referred to in sect....
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....s includible in the net wealth of the assessee and at the instance of the assessee a reference was made to this court being Wealth-tax Reference No. 29 of 1987--Kishore B. Setalvad v. CWT [2002] 256 ITR 637. The court considered the question whether the Tribunal was justified in including the value of the assessee's interest in the open plots in question in two co-operative societies in the net wealth of the assessee. In the course of hearing of that wealth-tax reference, learned counsel for the Revenue had contended that what was exempted under section 5(1)(xxviii) of the Wealth-tax Act was only the shares in the cooperative society and not the lease hold interest in the open plot of the land belonging to the co-operative housing society. ....
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....in the property belonging to a co-operative housing society being permitted to be held by a person without holding its shares. We, therefore, proceed on the basis that when the Legislature granted exemption under section 5(1)(xxviii) of the Act in respect of the shares in a co-operative housing society, the Legislature intended to grant exemption in favour of all the rights flowing from shares in a co-operative housing society except the interest, which the Legislature itself brought in within the tax net by making an express provision in sub-section (7) of section 4 of the Act." It is thus clear that the member of a co-operative housing society only owns the shares in that society. The right to enjoy, or derive from, any land or building ....