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2018 (7) TMI 576 - AT - Income TaxExemption u/s 54 entitlement - gain is long term capital gain and reinvestment happened within the stipulated time - Held that:- It is not in dispute that the said allotment letter conferred right on the assessee to nominate any other person in her stead. The said right was subsequently transferred by the assessee in favour of Mrs Nitu Chowdhury and Mr Santosh Kr. Chowdhury on 10.12.2013 . This is nothing but a transfer of nominees in the subject mentioned property. There was no deed of conveyance executed either in favour of the assessee or in favour of Mrs Nitu Chowdhury and Mr Santosh Kr. Chowdhury. Section 2(14) of the Act clearly stipulates that ‘right in a property' is a capital asset. Since this right has been acquired by the assessee pursuant to allotment letter dated 12.4.2008 and the same has been held by the assessee up to 9.12.2013 (i.e for more than three years), the gain arose pursuant to such transfer would have to be construed only as long term capital gain, which has been rightly considered by the ld CIT-A. See VINOD KUMAR JAIN VERSUS COMMISSIONER OF INCOME TAX [2010 (9) TMI 850 - PUNJAB AND HARYANA HIGH COURT ] It is not in dispute that the assessee had duly reinvested the sale consideration in new property proposed to be purchased for ₹ 3,70,00,000/- and out of which ₹ 2,33,14,159/- was paid on 10.12.2013 itself ( i.e the date of agreement). Hence the resultant gain is long term capital gain and since the reinvestment had happened within the stipulated time, the assessee would be entitled for exemption u/s 54 of the Act. - Decided against revenue
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