TaxTMI 
TaxTMI 
2020 (4) TMI 779
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....ircumstances of the case and in law, the learned CIT (Appeals) has grossly erred in holding that the appellant has held the asset for a period of less than 36 months thus determining capital gains on sale of rights to a flat as "Short Term" disregarding the explanation given by the appellant. 2. On the facts and in the circumstances of the case and in law the CIT (Appeals) was not justified in holding that the period of holding the asset was to be calculated from the date of registration and not from the date of allotment totally disregarding the decision of the Supreme Court in the case of Gurbax Singh v. Kartar Singh and other reported in 254 1TR 112 (SC), wherein the Hon. Court has held that a document on subsequent registration will t....
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....s allotted by way of allotment letter dated 25/11/2006 for a total sum of Rs. 83.74 lacs. It was further stated that said flat was booked on 14/10/2006 upon payment of Rs. 7.96 Lacs. Thereafter, the builder vide allotment letter dated 25/11/2006 allotted said flat to the assessee. However, the agreement was registered only on 06/08/2010. In its computation of income, the assessee claimed indexed cost of acquisition by applying cost inflation index for financial year 2006-07 and worked out Long-Term Capital Gain (LTCG) of Rs. 51.80 Lacs. Against the same, the assessee claimed deduction u/s. 54 in view of purchase of another flat bearing No.1601 at Octarest, Lokhandwala Township, Akurli Road, Kandivali (E), Mumbai, which was registered for a....
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....lish rights over the property. Therefore, the allotment letter would not fall into the category of documents which proves that the property was held by the assessee. Consequently, the action of Ld. AO was upheld. Aggrieved, the assessee is under further appeal before us. 5. We have carefully perused the documents, as placed on record, concerning property transactions carried out by the assessee. Upon perusal of letter dated 14/10/2006 as issued by the builder, it is evident that the assessee has booked a flat in specie i.e. flat bearing No.504, Tower-I, Wing B in a project namely Oberoi Splendor, Village Majas, JVLR, Jogeshwari (E), Mumbai (in short 'Property') at agreed consideration of Rs. 79.62 Lacs. The terms of the letter postulates t....
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.... title and interest in the said premise under the said principal agreement and all the benefit incidental thereto. Upon combined reading of all these documents, it would transpire that the assessee has acquired certain rights of allotment in a specific property. These rights were created in assessee's favor, by the letter of builder issued on 14/10/2006. The subsequent letter dated 25/11/2006 as well as premises ownership agreement was nothing but improvement in the said rights of the assessee which were already created vide letter dated 14/10/2006. The assessee has sold these rights vide agreement dated 18/09/2010. Therefore, what was acquired by the assessee and what has ultimately been sold by the assessee is pari-materia the same. Thi....