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2023 (4) TMI 1042 - AT - Income TaxLong term capital gain - deduction claimed on account of indexed cost of acquisition - assessee is a non-resident individual - in which financial year the assessee can be said to have acquired the property for the purpose of granting indexation benefit of cost of acquisition? - HELD THAT:- As in the allotment letter not only a specifically identifiable residential flat was allotted to the assessee but the assessee had made payments in accordance with the terms and conditions of the allotment letter. In Circular No. 471, dated 15.10.1996, the Central Board of Direct Taxes (CBDT) has clarified that in respect of flats allotted under the self-financing scheme of the Delhi Development Authority (DDA), the date of issuance of allotment letter would be considered to be the date of acquisition of the property. This is so because, the allotment is final unless it is cancelled or the allottee withdraws from the scheme. In case of assessee before us, as well, the allotment letter issued by the developer/builder is final, as, it is in respect of a specifically identifiable property and has ultimately culminated in execution of apartment buyer’s agreement in financial year 2010-11 - thus the date of acquisition of the residential flat has to be reckoned from the date of the allotment letter. Thus benefit of indexed cost of acquisition should be available to the assessee based on the payments made beginning from financial year 2005-06 and not from the execution of the apartment buyers’ agreement, as directed by learned DRP. We direct the Assessing Officer to factually verify the computation of indexed cost of acquisition made by the assessee, basis payments made from financial year 2005-06, and allow the deduction. Assessee appeal allowed.
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