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2014 (12) TMI 264 - HC - Income TaxAssessability of asset sale STCG or LTCG - sale of right - date of allotment letter issued by the builder - Whether the asset which was sold by the assessee would be subject to short term capital gains in terms of Section 2(42A) or long term capital gains in terms of Section 2(29A) Held that:- The Tribunal placed reliance on Mrs.Madhu Kaul v. CIT [2014 (2) TMI 1117 - PUNJAB & HARYANA HIGH COURT] - a right has been conferred on the allottee 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 and the payment of balance instalments, 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 - the allottee gets the title to the property on issuance of allotment letter and the payment in instalments is only a consequential act upon which delivery of possession to the property flows thus, there is no reason as to why the same principle should not be applied to all transactions based on agreements in respect of capital asset - the breach of agreement would only give right to the beneficiary for enforcing the right over the property thus, the order of the Tribunal is upheld Decided against revenue.
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