2015 (10) TMI 2697 - SCH - Income Tax

Taxability of capital gains STCG OR LTCG booking rights to the apartment accrued to the assessee on the date of application for allotment/confirmation of allotment or on the date of execution of the agreement to sell i.e. the buyer s agreement Held that - No legal and valid ground for interference. The Special Leave Petition is dismissed. HC order confirmed 2014 (3) TMI 474 - DELHI HIGH COURT HC has held that the date of acquisition of the capital asset must be considered the date of signing of said agreement i.e. 4.11.2004 thus the capital asset in the form of these rights was held for a period of 35 months and 28 days i.e. a short-term capital asset thus rendering the profits from the transfer of this capital asset taxable as short-term capital gains. It is incorrect to say that the assessee had no right or interest in the property until the completion of payment of all instalments under the agreement as the assessee was a beneficial owner from the date of signing the agreement having been put in possession of the property as of that date - Section 2(42A) of the Act only uses the term held and not owned thus indicating that a capital asset need not only refer to full title over any property Decided against Assessee.