2017 (10) TMI 1551

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....g rights and to treat the Sale consideration at Rs. 65,00,000/ - and not at Rs. 94, 14,000/-. 3. For that the Ld. CIT(A) erred in holding that the booking rights was held for more than 36 months hence the same is to be considered as long term capital asset. He has further erred in directing to treat the income from transfer of the property as Long Term Capital Gains and also allow the benefit of indexation as per section 48 of the it Act in computing the capital gains. 4. For that the Ld CIT (A) erred in reducing the returned income of the assessee. 5. For that the Revenue craves leave to add, alter or amend any ground before or at the time of hearing." 2. The assessee is a HUF and derives income from rent and ....

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....e carried the matter in appeal. The First Appellate Authority agreed with the contentions of the assessee that what was transferred was booking rights and not immovable property in the form of a flat. Consequently he held that section 50C of the Act were not applicable. He gave a factual finding that the assessee has never taken possession of the flat and had nominated the buyer in its place. He directed the AO to treat the transfer of property as long term capital gain. Aggrieved the revenue is before us on appeal. 4. After hearing the rival contentions and considering the papers on record of the authorities below and the case law cited I held as follows:- The important dates are given in part-VIII at page-5 of the assessment order w....

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....ility of asset sale - STCG or LTCG - sale of right - date of allotment letter issued by the builder - Whether the asset which was sold by the assessee would be subject to short term capital gains in terms of Section 2(42A) or long term capital gains in terms of Section 2(29A) - Held that- The Tribunal placed reliance on Mrs.Madhu Kaul v. CIT [Z014 (2) TMI 1117 - PUNJAB & HARYANA HIGH COURT] - a right has been conferred on the allottee to hold a flat which was later identified and possession delivered on a later date - the mere fact that possession was delivered later does not detract from the fact that the allottee was conferred a right to hold property on issuance of an allotment letter and the payment of balance instalments, identificatio....