2019 (10) TMI 1544 - AT - Income Tax
Gain on sale of property - STCG OR LTCG - occupancy rights of the property - reckoning of date of acquisition of the property - AO treated the occupancy rights of the assessee in the Office premises as a "Short Term Capital Asset", and worked out STCG on the transfer of the same - HELD THAT:- As pursuant to the final and binding allotment of the office premises assessee got vested with the ownership of the rights in respect of the property under consideration. Our aforesaid view is supported by the judgment of the Hon'ble High Court of Bombay in the case of PCIT-3, Vs. Vembo Vaidyanathan [2019 (1) TMI 1361 - BOMBAY HIGH COURT] wherein as referring to the clarification issued by the CBDT, vide its Circular No. 672, dated 16.12.1993, it was observed by the Hon'ble High Court, that the Board had clarified that if the terms of the schemes of allotment and construction of flats/houses by the co-operative societies or other institutions were similar to the terms of allotment and construction by D.D.A, then on the same basis the acquisition of the property was to be related to the date on which the allotment letter was issued. On the basis of its aforesaid observations, the Hon'ble High Court had dismissed the appeal of the revenue. In the backdrop of our aforesaid deliberations, we are of the considered view that as no infirmity emerges from the order of the CIT(A), who we find had rightly concluded that the date of acquisition of the property under consideration was to be reckoned from the date of the allotment letter i.e 03.12.1999, therefore, we uphold his order.