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2017 (1) TMI 559 - AT - Income TaxComputation of capital gain - LTCG or STCG - Held that:- The date of allotment should be taken as the date for computing the holding period for computing capital gains. In the case on hand, the date of allotment as per letter of allotment is 29.03.2006 and the date of sale of the said property/flat at Torino Building is 23.10.2009 and therefore it is clear that the holding period is more than 36 months. The assessee paid the first instalment on 29.03.2006, thereby conferring a right to hold a flat, which was identified and the possession of which was given on a later date. In the factual matrix the capital gains earned by the assessee on sale of the said flat has to be treated as LTCG. We hold that the capital gains of ₹ 1,82,01,530/- arising to the assessee on sale of the said flat at Torino Building is to be assessed as LTCG and not as STCG as held by the authorities below. Consequent to our holding that the capital gains of ₹ 1,87,01,530/- arising to the assessee on sale of the said flat at Torino Building is to be treated as LTCG, we hold that the assessee is entitled to be allowed exemption of ₹ 64,92,50/- under section 54 of the Act in respect of investment made by him in the purchase/construction of new flat at Amanda ‘B’, Hiranandani Meadows, Thane as worked out by the AO at para 4.3 of the order of assessment as against the assessee’s claim of ₹ 73,72,315/-. Consequently, grounds 1 to 3 of the assessee’s appeal are partly allowed as indicated above.
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