Affirming the order of Tribunal the High Court held that. The allottee gets title to property on issue of allotment letter. The payment of instalments is only a follow-up action. Taking delivery of possession is only a formality. The date of allotment is the date on which the purchaser of a residential unit can be stated to have acquired the property and not on the date of registration of agreement. Sale consideration is assessable as long term capital gains. Followed City v. TATA Services Ltd. (1980) 122 ITR 594 (Bom.)(HC) Circular No. 471 dt. 15-101986. (1986) 162 ITR 17 (St), Circular No.672 dt. 16-12-1993 (1994) 205 ITR 329 (St.) (ITA No. 1549 of 2016, dt. 22.01.2019) (AY. 2009-10).
PCIT v. Vembu Vaidyanathan ( 2019) 261 Taxman 376/ 176 DTR 446 / 308 CTR 302 /( 2019) 413 ITR 248(Bom)(HC), www.itatonline.org Editorial :SLP of revenue is dismissed PCIT v Vembu Vaidyanathan ( 2019) 265 Taxman 535 (SC)/ Order of DCIT v. Shri Vembu Vaidyanathan, ITA NO.5749/Mum/2013 dt 29-10-2015
S. 45 : Capital gains-Allotment letter-The allottee gets title to property on issue of allotment letter- the payment of instalments is only a follow¬-up action-Taking delivery of possession is only a formality- the date of allotment is the date on which the purchaser of a residential unit can be stated to have acquired the property and not on the date of registration of agreement – Assessable as long term capital gains – Entitle benefit of S. 54F. [S. 2(14),, 2(29A, 2(29B)2(42A), 54, 54F]