| Question And Answer | |
|---|---|
| Subject: | cost of redeveloped flat |
| Category: | Income-Tax |
| Querist: | subodh vora |
| Answered by: | Advocate Shashi Ashok Bekal |
| Tags: | Capital Gains, cost of acquisition, cost of flat, redevelopment, Stamp Duty, stamp valuation |
| Date: | December 11, 2021 |
If assessee get redeveloped flat today against his old flat and same is sold after 2 years , the cost of acquisition would be stamp duty value as on today?
.The jurisdictional Bombay High Court in the case of CIT v. Ms. Chhaya B. Parekh, ITA (L) No.1583 of 2012 dated 24th January, 2013 has, after relying on the decision in the case of Vania Silk Mills (P.) Limited v. CIT [1991] 191 ITR 647 (SC), held that demolition of a structure would not constitute as a transfer.
Therefore, the redevelopment of assessee’s property does not amount to transfer. Therefore, the period of holding would start from the date of original acquisition of the property.
For the purpose of stamp duty, the cost at the time of execution of the agreement would be the value that would be adopted.