TaxTMI 
TaxTMI 
2026 (7) TMI 792
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.... 'the Act') dated 22.12.2017 by the Assessing Officer, ACIT, Circle-63(1), New Delhi (hereinafter referred to as 'ld. AO'). 2. The revenue has raised the following grounds of appeal before us:- "1. That having regard to the facts and circumstances of the case, Ld. A.O. has erred in law and on facts in framing the assessment in violation of principles of natural justice in as much as passing the impugned order by recording incorrect facts and findings and without providing adequate opportunity of hearing. 2. That having regard to the facts and circumstances of the case, Ld. A.O. has erred in law and on facts by not considering the date of allotment of residential flat as commencement of period of holding of residential f....
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.... proceedings inquired into the details of property transaction giving rise to the said capital loss. The Assessee purchased an apartment in Commonwealth Village, New Delhi. The Learned AO observed that the holding period of the property was less than 36 months and accordingly treated the gain arising on its transfer as short-term capital gain. Consequently, the Assessee's claim of long-term capital loss of Rs. 17,47,499 was denied and an addition was made on account of short-term capital gains to the extent of Rs. 2,62,04,868. 4. The Learned AO noted that the Assessee had entered into a buyer's agreement for purchase of flat during the financial year 2008-09 and the actual possession was obtained only in financial year 2012-13. S....
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..... The Learned AO rejected this contention by observing that the use of flats for the games was a precondition in the builder's agreement and not a matter where the builder sought the Assessee's consent. Accordingly, the Learned AO concluded that the Assessee did not have the right to use or enjoy the flat prior to April-May 2012. Further, the Assessee submitted that the Delhi Development Authority had entered into a project development agreement with M/s Emaar MGF Construction Pvt Ltd. under which the latter was authorized to develop and construct residential apartments at the Commonwealth Games Village project and to execute buyer's agreements with the intending purchasers. Pursuant thereto, the Assessee had entered into an apartme....
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....that the period of holding of the apartment had to be reckoned from the date of allotment i.e. 26-06-2008. The transfer having been effected during the assessment year under reference, the capital gain was therefore to be treated as long-term capital gain. The Assessee contended that the Learned AO erred in not appreciating the crucial involvement of the Delhi Development Authority in the entire project in ignoring the fact that the building was fully constructed and in use during the Commonwealth Games 2010 and in mechanically linking the holding period only to the date of possession in 2012. In these circumstances, the Assessee submitted that the Learned AO's approach of treating possession as the sole determinative factor was untenab....