TMI BlogInt paid during construction period is treated as costX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Sir Mr X has booked a flat in Jaipur ( Raj. ) with a private builder in June 2007 and to pay the cost of flat he has taken a housing loan . The possession of the said flat was taken in Dec 2009. Now Mr X sold the flat in August 2010 and has purhcases another flat in Sept 2010 . 1. Whether he can take benefit of long term capital gain as the period of date of booking and date of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sale is more 36 months or only date of possession will count for the purpose of Long term capital gain. Please give your opinion looking to the recent judgement of Pun and Har court and also of Bombay HC. 2. In case it is treated as short term capital gain, whether Mr X can treat the interest paid as cost of acquisition of the assets. Please give the opinion on the basis of some case laws. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - Reply By Surender Gupta - The Reply = It will be treated as long term capital gain from the date of agreement. Provisions of section 2(47) have been analysed by the Madras High Court in MADATHIL BROTHERS Versus DEPUTY COMMISSIONER OF INCOME-TAX ( 2007 -TMI - 4563 - MADRAS HIGH COURT) . HC has examined the issue in detail with reasons of amendment and applicability of Supreme Court D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecision in the matter of C.I.T. Vs. PODAR CEMENT PVT. LTD ( 1997 -TMI - 5598 - SUPREME Court) in the present matter. The capital gain arising on the transfer of capital assets has to be worked out from the date of the agreement under which the assessee was put in possession of the property. You may also see: Decision of the Punjab and Haryana High Court reported in (C.I.T. V ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. VED PARKASH AND SONS (HUF) [ 1993 -TMI - 20244 - PUNJAB AND HARYANA High Court ]), the decisions of the Rajasthan High Court reported in (C.I.T. Vs. VISHNU TRADING AND INVESTMENT CO [ 2002 -TMI - 12246 - RAJASTHAN High Court ] ) and (C.I.T. Vs. RAJASTHAN MIRROR MANUFACTURING CO [ 2002 -TMI - 12098 - RAJASTHAN High Court ] ) as well as the decision of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Andhra Pradesh High Court reported in ( M.SYAMALA RAO Vs. C.I.T [ 1998 -TMI - 16643 - ANDHRA PRADESH High Court] ), - Int paid during construction period is treated as cost - Query Started By: - GOPAL GUPTA Dated:- 20-8-2011 Income Tax - Got 1 Reply - Income Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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