AI Drafter 
TaxTMI 
TaxTMI 
2026 (5) TMI 1459
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....ct"). 2. The grounds of appeal raised by the assessee are : "1. The Learned Commissioner of Appeal-NFAC has confirmed in denying claim of the appellant on sale of office premises at Bharat diamond bourse as long-term capital loss of INR 48,86,731/- and further erred in treating the same as short term capital gain of INR 2,84,95,522/-and thereby computing total taxable Income at INR 2,86,37,664/-under normal provisions as against computation of Income at INR 2,66,17,601/- by the appellant as per MAT profit u/s 115 JB. The addition made by the Ld. Jurisdictional Assessing Officer and the Ld. Commissioner of Appeal-NFAC needs to be deleted 2. The Ld. Commissioner of Appeal-NFAC erred in confirming initiating the p....
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....o. 3542 and granted premises bearing No. BC-3030 admeasuring 1117 sq. ft. carpet area equivalent to 1595 sq. ft. saleable area. The lease deed in respect of the said premises was registered on 21.09.2010, and possession was also stated to have been granted in the financial year 2010-11. 6. The Assessing Officer observed that the allotment letter issued in 1991-92 was only provisional in nature and the allotment letter itself clearly stated that it does not constitute a firm allotment and is only a letter of intent. The Assessing Officer further noted that no registered agreement existed till financial year 2009-10 and the legal ownership rights were crystallized only upon execution and registration of documents in September 2010. Accordi....
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....only a letter of intent and does not create any right in the property. It was further submitted that the ownership of the property was crystallized only in the year 2010 upon registration of documents and grant of possession and therefore the gain has been rightly treated as Short-Term Capital Gain. 10. We have heard the rival submissions and perused the material available on record. The issue for consideration is whether the assessee can be said to have acquired the property in the year 1991-92 on the basis of initial allotment or whether the acquisition is to be reckoned from the date of registration of documents and grant of possession in the year 2010. The allotment letter issued is reproduced hereunder for the sake of brevity:- 1....
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....l and specifically states that no right is created. 14. Similarly, the decision of the Tribunal in the case of Sumit Export vs ACIT is also distinguishable as in that case the allotment resulted in crystallization of rights in the property, whereas in the present case the allotment remained provisional and the final rights were crystallized only in the year 2010. 15. The assessee has also placed reliance on the decision of the Tribunal in the case of M/s Suresh Brothers (ITA No. 553/Mum/2016 dated 18.11.2019). On perusal of the said decision, it is observed that in that case the assessee was initially allotted the property in the year 1991 and had made substantial payment of Rs. 43,12,500/- at the time of application. However, the fin....
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....y in the order of the Ld. CIT(A) in upholding the action of the Assessing Officer. The grounds raised by the assessee are dismissed. 19. In the result, the appeal filed by the assessee is dismissed. Order pronounced in the open court on 29/04/2026. ============= Document 1 15 ப Regd Office: 391. Dr D B Morg (Lamington Rood), Bombay-400 004. Telephone 350174 356935 Telex 011-76204 BDD IN 28th JANUARY 1992. SUNSHINE EXPORTS 1017/18- PRASAD CHAMBERS, OPERA HOUSE, BOMBAY - 400 004. Dear Sirs, Sub: Proposed Bharat Diamond Bourse Complex -- Application for allotment of office space. Your application No. 1556 has been considered and it has been decided provisionally to allot you an area of 750sq.ft. (approximat....