Capital gains on gifted flats taxed upon transfer, using original acquisition date; swapping units redefines rights, not new allotment.

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....Regarding capital gain on sale of flats, the ITAT held that for gift transactions, capital gain is not taxable at the time of gift, but is brought to tax when the gifted asset is subsequently transferred by adopting the date and cost of acquisition of the previous owner. For indexation benefit, the index cost will be taken from the previous year in which the previous owner had acquired the property. Regarding swapping of two units for one unit, the ITAT held that the builder-buyer agreement was not a fresh allotment or an exchange deed, but a redefinition of existing rights. The date of acquisition should be reckoned from the date of original allotment, and not the subsequent agreement. Therefore, the income cannot be treated as short-term capital gain. The assessee's appeal was allowed.....