Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (9) TMI 644 - ITAT MUMBAISale of residential property - Long Term Capital Gain OR Short Term Capital Gain - period of holding - deduction claimed under section 54EC and 54F - Held that:- The date of execution of agreement to sale of flat (16.11.2006) should be treated as date of acquisition of capital asset. The assessee sold the capital asset by agreement dated 18.11.2009, to Mr & Mrs Soni. The objection of the revenue that the assessee intentionally waited for mechanical lapse of 36 months and deliberately put the date on agreement as 18.11.2009 to avoid the payment of tax is not tenable. Every individual has a right to deal his asset as per his own choice and convenience and the revenue cannot dictate any particular way unless otherwise the transaction is prohibited by law. Thus, in our considered view the assessee acquired the capital asset on 16.11.2006 and transferred it on 18.11.2009. Hence, qualified for Longterm Capital Gain (LTCG). We may make it clear that the assessee would be entitled for the benefit of indexation from 16.11.2006 only for the purpose of calculation the LTCG. The assessing officer is further directed to allow the deduction/benefit of ₹ 50,00,000/- under Section 54EC and 54F after verification of facts. Thus the grounds of appeal raised by assessee are allowed.
|