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2014 (2) TMI 1117 - HC - Income TaxNature of Capital gain LTCG or STCG Sale of residential property Held that:- The decision in Vinod Kumar Jain v. Commissioner of Income Tax, Ludhiana and others [2010 (9) TMI 850 - Punjab and Haryana High Court] and Circular No.471, dated 15.10.1986 followed - The allottee gets title to the property on the issuance of an allotment letter and the payment of instalments is only a consequential action upon which the delivery of possession flows - the provisions of Sections 2(14), 2(29A) and 2(42A) encompasses within its ambit those cases of capital asset which are held by an assessee. The flat was allotted to the appellant on 07.06.1986, vide letter conveyed to the assessee on 30.06.1986 - The assessee paid the first installment on 04.07.1986, thereby conferring a right upon the appellant to hold a flat, which was later identified and possession delivered on a later date - The mere fact that possession was delivered later, does not detract from the fact that the allottee was conferred a right to hold property on issuance of an allotment letter - The payment of balance installments, identification of a particular flat and delivery of possession are consequential acts, that relate back to and arise from the rights conferred by the allotment letter thus, the ITAT has erred in holding that the transaction does not envisage a long term capital gain Decided in favour of Assessee.
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