TaxTMI 
TaxTMI 
2020 (5) TMI 434
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....ssessee has challenged the action of the revenue in rejecting the stand of the assessee that the entire capital gains in question should be treated as long term capital gains and consequent benefit u/s 54F of the Act should be given in full as claimed by the Assessee. 3. Briefly stated, the assessee is an individual having income from salary, house property and other sources. For the assessment year 2012-13, the assessee has also derived income under the head 'capital gains'. The return of income declaring total income by the assessee at Rs. 4,31,040/- was subjected to scrutiny assessment. In the course of scrutiny assessment, the AO inter alia disputed the claim of the assessee towards long term capital gains arising on transfer of certai....
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.... assessee on April 3, 2009. The BDA ultimately executed the sale deed in favour of the assessee on November 26, 2009. The BDA allotted a single PID No. to both sites together as 72-30-37-37A. 6.2 The assessee sold both the sites (site no.37 and 37A) together as a single plot measuring 440.96 sq.mts. (4,745 sq.ft.) for a sale consideration of Rs. 2,80,00,000/- on November, 21, 2011. The assessee reinvested the sale proceeds in a new house to the extent of Rs. 2,79,25,124/- by August 21, 2014 and claimed deduction u/s 54F while computing the capital gains. 6.3 In the context of above background facts, the Ld. Counsel submitted that the AO has disputed the claim of LTCG on transfer of the Site no. 37 having regard to the period of holding. T....
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.... of payment in consequence thereto and once this is done, the period of holding would exceed period of 3 years and the capital asset (site no. 37) would be regard as Long term capital asset prior to its transfer. 6.5 In support of the its claim that gains arising on sale of Site no. 37 is required to be held as LTCG as claimed ( and not STCG as held by AO), it was canvassed that a definite right on the capital asset had accrued in favour of the assessee and effective possession was also lying with the assessee and therefore, the date of allotment letter or at best date of payment in pursuance of such allotment letter should be reckoned for the purpose of determination of period holding to ascertain nature of capital gains. It was submitted....
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....lly considered the rival submissions. The short issue placed for our determination is whether the period of holding of capital asset for the purposes of classification of capital gains is to be seen with reference to date of allotment of land or from the date of formal execution of sale deed for registration. Whereas it is the case of the assessee that the letter of allotment issued by BDA in respect of land parcel (Site no. 37) in question has given effective right to the assessee to assert its command on the asset which right is includible in the expression 'property' for the purpose of s.2(14) of the Act, defining the expression 'capital asset', the revenue on the other hand, seeks to advance an argument that the allotment letter by itse....