Allowing the appeal the Court held that the agreement between the Corporation and the assessee referred to the assessee as the “lessee purchaser”. The agreement specifically stated that the price of the sheds had been tentatively fixed by the Corporation and part of this had already been paid by the assessee and the balance amount was agreed to be paid in instalments. Further, the agreement stated that the Corporation had transferred the property to the assessee by way of lease for the time being with the ultimate object of selling the property to the lessee purchaser, but on the fulfilment of the terms and conditions laid down therein. There was no allegation that the assessee had flouted the terms and conditions laid down by the Corporation. Considering the totality of the factual matrix, it was to be held that the assessee had been holding the property ever since the date of allotment, i.e., August 11, 1988. It should be treated as a long-term capital asset and the gains arising therefrom should be assessed at low tax effect. (AY. 1997-98)