{"id":62691,"date":"2026-07-28T06:43:09","date_gmt":"2026-07-28T01:13:09","guid":{"rendered":"https:\/\/itatonline.org\/digest\/rajesh-shamji-furia-v-ito-mum-trib-www-itatonline-org\/"},"modified":"2026-07-28T06:43:09","modified_gmt":"2026-07-28T01:13:09","slug":"rajesh-shamji-furia-v-ito-mum-trib-www-itatonline-org","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/rajesh-shamji-furia-v-ito-mum-trib-www-itatonline-org\/","title":{"rendered":"Rajesh Shamji Furia v. ITO ( Mum)( Trib) www itatonline.org"},"content":{"rendered":"<div>\n<p>The assessee, who had acquired a residential flat in 2006, received a redeveloped flat under a redevelopment scheme pursuant to a Development Agreement and a Permanent Alternate Accommodation Agreement dated 12-01-2018. The Assessing Officer held that the redeveloped flat was a new capital asset acquired on 12-01-2018 and, since it was sold on 20-01-2018, assessed the gains as short-term capital gains, denied indexation and rejected the claim for exemption under sections 54\/54F. The Tribunal held that a redevelopment scheme merely substitutes the old premises with the redeveloped premises and does not extinguish the owner&#8217;s proprietary rights or result in acquisition of a fresh capital asset. The Permanent Alternate Accommodation Agreement only records the premises allotted in substitution of the original flat and does not determine the date of acquisition. Following <strong data-start=\"1710\" data-end=\"1740\">PCIT v. Vembu Vaidyanathan<\/strong><b> <\/b>(2019) 413 ITR 248 (Bom.)(HC) , CBDT Circular Nos. 471 and 672, and the coordinate bench decision in <strong data-start=\"1837\" data-end=\"1874\">Mrs. Urmila Jagdish Mehta v. ACIT<\/strong><b>,<\/b> the Tribunal held that the period of holding had to be reckoned from the date the rights in the property crystallised under the redevelopment arrangement (and, in any event, the asset had been held beyond the statutory period). Accordingly, the gains were held to be long-term capital gains, the assessee was held entitled to indexation and exemption under sections 54\/54F, and the addition was deleted. <b>(<\/b><strong>ITA No. 1672\/Mum\/2026,dt. 16-07-2026(AY. 2018 -19 ) <\/strong><b><\/b><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>S. 45: Capital gains \u2013 Redevelopment -On redevelopment of a building, the redeveloped flat received in lieu of the original flat is a continuation of the existing capital asset and not a new independent capital asset- The period of holding is to be reckoned from the date on which rights in the original property\/redevelopment crystallised and not from the date of the Permanent Alternate Accommodation Agreement- Consequently, gain on sale of the redeveloped flat is assessable as long-term capital gain and eligible for indexation and exemption under sections 54\/54F. [S. 2(42A, 48, 54F, CBDT Circular Nos. 471 &amp; 672 ] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-62691","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-gj9","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62691","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=62691"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62691\/revisions"}],"predecessor-version":[{"id":62692,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62691\/revisions\/62692"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=62691"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=62691"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=62691"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}