Tribunal held that what was acquired by the assessee and what had ultimately been sold by the assessee was in pari materia. Thus the date of acquisition of the right could not be taken as June 22, 2010. The assessee acquired the right on October 14, 2006 which was ultimately sold on September 18, 2010. Therefore, since the holding period of the property was more than 36 months, the resultant gains would be long-term capital gains. Consequently, the benefits of indexation would be available since the financial year 2006-07. The assessee submitted that the assessee’s deduction claim would fall under section 54F and not under section 54 since what had been sold was merely a certain right in the property. The facts were brought to the notice of the Commissioner (Appeals) also. Therefore, the alternative claim as made by the assessee under section 54F would be admissible. The Assessing Officer was directed to verify the assessee’s claim under section 54F and recompute the income.( AY.2011-12)
Raju Dayal Sahani v. ITO (2020) 78 ITR 35 ( SN) ( Mum) (Trib)
S.45: Capital gains — Long-term capital gains —Allotment letter – – Subsequent letter and premises ownership agreement — Improvement in rights which already created — Date of acquisition of right not date of registration but date of allotment letter — Holding of property more than 36 months — Assessable as long term capital gains – Entitled to Indexation benefit —Entitled to exemption on reinvestment in new flat [ S. 2(42A),54 , 54F ]