Assessee acquired a property from a building society under a lease-cum-sale agreement dated 22-3-2001. Entire consideration was paid when site was originally allotted in 2001. Absolute conveyance was made on 31-8 2014. Assessee sold the site and building on 3-12-2014 and claimed the sale as long term capital gains. AO treated the transaction as short term considering the date of conveyance ie 31-8 -2014. On appeal the Tribunal held that date of holding to be computed from the date of allotment and not from the date of absolute conveyance was made on 31-8-2014. Followed CIT v. Dr. Shakuntala ITA No.117 of 2006, dt. 19-9-2007 (Karn) (HC) and CIT v. A Suresh Rao (2014) 223 Taxman 228 (Karn)(HC). ( AY. 2015-16)
Bhatkal Ramarao Prakash. v. ITO (2019) 175 ITD 144 / 199 TTJ 861/180 DTR 100(Bang.) (Trib.)
S. 45 : Capital gains-Long term capital gains- Lease –Entire consideration was paid when site was originally allotted in 2001- Date of holding to be computed from the date of allotment and not from the date of absolute conveyance was made and entitle to deduction u/s. 54F of the Act. [S. 2(42A), 2(47), 54, 54F]