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2021 (3) TMI 829 - AT - Income TaxRevision u/s 263 - Sale of ground floor of residential unit - whether it give rise to long term capital gains or short term capital gains - Computation from period of holding from the date of getting right in the property or from the date of taking the possession - as per CIT assets sold (ground floor of residential site) as short term capital gains and the assessee is entitled to deduction u/s 54 on investment of new asset (flat) - HELD THAT:- Assessee gets a right to the impugned property on the date of payment of advance, i.e., on 28.06.2008 and payment of balance amounts is only a follow up action and taking delivery of possession is only a formality. Therefore, reckoning the period from 28.06.2008, i.e. the date of advance, thus hold that the sale of ground floor give raise to long term capital gains and not short term capital gains as held by the CIT. Whether assessee is entitled to deduction u/s 54? - HELD THAT:- Admittedly, the assessee is handed over possession of new flat in the month of November 2011 and gruhapravesham was completed on 12.03.2012. Since the assessee was handed over the possession of the new flat only in November 2011, that date should be considered for all practical purposes, the date of acquisition of new flat for claiming deduction u/s 54 - As mentioned earlier, window of purchase of new asset is available to the assessee from 24.05.2011 to 24.05.2014. Therefore, handing over possession of new asset being in the month of November 2011 falls within the period of window mentioned above. Hence, hold that the assessee is entitled to deduction u/s 54 of the I.T.Act on purchase of new asset - Decided in favour of the assessee.
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