9911796707
TMI Blog2020 (12) TMI 390X X X X Extracts X X X X X X X X Extracts X X X X ..... m additions/disallowance were deleted by the Hon'ble ITAT vide order dated 18.10.2018 for the Assessment Year under consideration. 3. Inspite of issue of notice none appeared on behalf of the assessee nor any adjournment was sought by the assessee. Therefore, we proceed to dispose off this appeal on hearing the Ld. DR on merits. 4. Ld. DR fairly submitted that in this case the Hon'ble Bench had deleted the additions/disallowances made in the Assessment Order passed u/s.143(3) of the Act. Ld. DR further submitted that revenue filed an appeal before the Hon'ble High Court challenging the order of the Tribunal. Therefore, Ld. DR requested to set-aside the order of the Ld.CIT(A). 5. Heard Ld. DR, perused the orders of the authori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s short term or the long term capital gain and / or the assessee is entitled for exemption under section 54 of the Act. The lower authorities have not disputed the certain dates. It is not in dispute that the assessee purchased the right in the asset/ flat from the person who was initially allotted the flat vide allotment letter. The assessee purchased the said flat vide agreement dated 25.04.2008, which was duly confirmed by the Builder (Oberoi Constructions). In pursuance of the purchase agreement from the original allotees the agreement to sale was executed on 19th July 2009 and was registered on 3rd August 2009. This agreement was executed in lieu of allotment letter dated 17/05/2006 & 25 /04/2008, which is duly endorsed on the agreemen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. The Board had occasion to examine as to whether the acquisition of a flat by an allottee under the Self-Financing Scheme (SFS) of the D.D.A. amounts to purchase or is construction by the D.D.A. on behalf of the allottee. Under the SFS of the D.D.A., the allotment letter is issued on payment of the first instalment of the cost of construction. The allotment is final unless it is cancelled or the allottee withdraws from the scheme. The allotment is cancelled only under exceptional circumstances. The allottee gets title to the property on the issuance of the allotment letter and the payment of instalments is only a follow-up action and taking the delivery of possession is only a formality. If there is a failure on the part of the D.D.A. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons that even in respect of allotment of flats/houses by co-operative societies and other institutions, whose schemes of allotment and construction are similar to those of Delhi Development Authority, a similar view should be taken. 2. The Board has considered the matter and has decided that if the terms of the schemes of allotment and construction of flats/houses by the co-operative societies or other institutions are similar to those mentioned in para 2 of Board's Circular No. 471, dated 15-10-1986, such cases may also be treated as cases of construction for the purposes of sections 54 and 54F of the Income-tax Act. 14. The Hon'ble Delhi High Court in CIT vs. Ramakrishnan [2014] 363 ITR 59 (Del.) held that in order to determine ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... set off under section 54 of the Act. 16. Considering the decision of various High Courts as referred above and the CBDT Circulars No. 471 & 672, we find that the holding period should be computed from the date of issue of allotment letter. In case, the holding period is more than 36 month from the date of allotment till the date of transfer, the asset is to be treated as Long Term Capital Asset in the hand of assessee and on transfer of such asset; the assessee would be entitled for Long Term Capital Gain. Now coming the facts of the present case, the assessee acquired the right in flat no. 302, 3rd Floor, Tower-C with car parking in Oberoi Spring, Oshiwara, Andheri vide allotment letter dated 25.04.2008, which is duly confirmed and ackno ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
