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2022 (7) TMI 474 - AT - Income TaxExemption u/s 54F - Long term capital asset or not - period of holding - AO observed that assessee has sold residential flat after seven months from its acquisition, therefore, it is a short term capital gain - assessee was asked to explain why the above sale should not be treated as short term capital gain and exemption claimed u/s. 54F - Assessee expalined that he was allotted flat based on the joint development agreement entered with the developer - HELD THAT:- The fact remains that assessee has promised and allotted the flat in the new proposed building in lieu of the right on the land which was subject matter of the development. Assessee surrendered the right on the land based on the allotment of the flat, may not be a specific flat but having a legal promise that assessee will get a flat of 3BHK measuring 1000 Sq.ft. and accordingly, builder has allotted Flat No. 201. Therefore, as held in the case of Pr.CIT v. Vembu Vaidyanathan [2019 (1) TMI 1361 - BOMBAY HIGH COURT] it was held that for computing capital gain tax the date of allotment would be the date on which purchase of residential unit can be stated to have acquired property. We are of considered view that assessee has transferred the property with the promise of allotment of flat. Therefore, the date of acquisition should be the date of allotment of flat, in this case the date of entering into the joint development agreement. Therefore, the claim made by the assessee is proper and justified and accordingly, we direct the Assessing Officer to allow claim made by the assessee u/s. 54F of the Act and accordingly, ground raised by the assessee is allowed.
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