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2023 (2) TMI 627 - AT - Income TaxDenying deduction u/s 54 - treating the Long Term Capital Gain arising on sale of old property as Short Term Capital Gain - whether the date of acquisition of the property is to be considered from the date of allotment issued by the builder? - HELD THAT:- We find that the issue squarely covered in the favour of the assessee by the decision in case of principal Commissioner of income tax vs Vembu Vedhyanathan [2019 (1) TMI 1361 - BOMBAY HIGH COURT] wherein the honourable High Court after considering the circular issued by the central board of direct taxes has held that the allotment letter by the builder is the date of acquisition of the property as the period of holding for the purpose of determining whether the asset is a long-term capital asset or a short-term capital asset, is to be taken therefrom. Honourable Supreme Court has dismissed the special leave petition filed by the by the revenue [2019 (7) TMI 1111 - SC ORDER] Therefore, we direct the AO to consider the date of acquisition of the property sold on 4/1/2014 from the date of allotment letter i.e. 20/7/2009 and consider the asset transferred as a long-term capital asset. Accordingly, the assessee is also eligible for deduction u/s 54 of the act.- Decided in favour of assessee.
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