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2021 (4) TMI 16 - ITAT DELHITaxability of capital gain arising from sale of property - Gain on transfer of asset as short-term capital gain - Whether date of allotment of property which is relevant for the purpose of computing the holding period and not the date of registration of conveyance deed? - CIT(A) held that since the property was held by the assessee for a period of 16 months from the date of registration till the date of transfer, therefore, the property in question is short-term capital asset and profit on such transfer is short-term capital gain and the assessee is not entitled to any indexation benefit - HELD THAT:- Coordinate Bench of the Tribunal in the case of Ranjana Bammi [2017 (8) TMI 338 - ITAT DELHI] has held that for determining the taxability of capital gain arising from sale of property, it is the date of allotment of property which is relevant for the purpose of computing holding period and not the date of registration of conveyance deed. The Hon’ble Punjab & Haryana High Court in the case of Mrs. Madhu Kaul vs. CIT [2014 (2) TMI 1117 - PUNJAB & HARYANA HIGH COURT] has held the mere fact that possession was delivered later does not detract from the fact that the allottee was conferred a right to hold property on issuance of an allotment letter. The payment of balance instalments, identification of a particular flat and delivery of possession are consequential acts that relate back to and arise from the rights conferred by the allotment letter. The capital gain arising in that case was long-term capital gain. The Delhi Bench of the Tribunal in the case of Praveen Gupta [2010 (8) TMI 820 - ITAT DELHI] going into the provisions, it is not necessary that to constitute a capital asset the assessee must be the owner by way of a conveyance deed in respect of that asset for the purpose of computing capital gain. The assessee had acquired a right to get a particular flat from the builder and that right of the assessee itself is a capital asset. The word 'held' used in Section 2 (14) as well as Explanation to Section 48 clearly depicts that assessee must have some right in the capital asset which is subject to transfer. The various other decisions relied on by assessee also supports his case to the proposition that for determining the taxability of capital gain arising from sale of property, it is the date of allotment of the property which is relevant for the purpose of computing the holding period and not the date of registration of conveyance deed. We hold that the asset in question is a long-term capital asset and the assessee is entitled to the benefit of indexation from the date of allotment/agreement. We set aside the order of the CIT(A) and direct the AO to accept the amount of long-term capital gain as worked out by the assessee. Appeal filed by the assessee is allowed.
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