Acquisition date for redeveloped residential flat: allotment letter sets holding period; treated as LTCG, s.54 exemption restored.

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....The dominant issue was determination of the acquisition date/holding period of a redeveloped residential flat for classifying gains as long-term or short-term and consequential denial of exemption under s.54. The tribunal held that rights in the redeveloped flat crystallized on issuance of the allotment letter and subsequent agreement, and redevelopment was a continuation of pre-existing ownership rather than a fresh purchase. Payment of installments for additional area, including the last installment, and construction/possession timelines could not defer the acquisition date, consistent with binding HC precedent on allotment-based acquisition. Since the asset was held for more than 36 months before sale, gains were assessable as LTCG; the STCG addition was deleted and the appeal allowed. - ITAT....