2022 (1) TMI 1028

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....apital gains earned on sale of residential plot of Gurgaon. 3. Representatives of both the sides were heard at length, case records carefully perused. Judicial decisions relied upon duly considered. 4. Briefly stated, the facts of the case are that in the computation of taxable income, the assessee has shown NIL income under the head 'Capital Gains' after claiming exemption under sections 54D/54EC/54ED at Rs. 32,28,632/- and cost of acquisition at Rs. 32,87,578/- as against sale consideration of Rs. 62,16,210/-. 5. The assessee was asked to explain the computation of income under the head 'Capital Gains' and also explain the exemption claimed under Section 54F of the Act. 6. The assessee explained that it has purchased a plot an....

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....certificate of possession was given on 08.05.2006. In our considered view, the date of allotment is relevant for the purpose of computing holding period and not the date of registration of conveyance deed as held by the Hon'ble Jurisdictional High Court of Delhi in the case of K. Ramakrishnan 48 taxmann.com 55. The relevant findings read as under: "2. In this case the relevant facts relating to the acquisition of the capital asset, i.e., the HUDA plot and its ultimate disposal of the assessee was considered by the Tribunal and discussed as follows : "5. The ld. counsel for the assessee, on the other hand, has placed strong reliance on the impugned order. Besides addressing the oral arguments, he has also placed before ....

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....er, the right of the assessee in the allotted plot was an absolute right as owner thereof; that this clause prohibited the assessee from transferring the plot except with the permission of HUDA; that this clause stated that it was till the execution of the conveyance deed, that the assessee was not to be treated as owner of the plot; that as per clause 12, execution of the conveyance deed was not made subject to the handing over of the possession of the plot; that thus, right from 1999, when the plot was allotted to the assessee, the assessee was having absolute rights thereon; that in 'Jitender Mohan', 11 SOT 594 (Del), it has been held that it is the date of allotment which is relevant for the purpose of computing a holding period....