The assessee sold a plot of land\u00a0 and claimed exemption u\/s 54 of the Act . \u00a0The exemption was denied on the ground that it was short term\u00a0 capital gain which was affirmed by the CIT(A). \u00a0On appeal the Tribunal held that in terms of Circular No. \u00a0471 dated October 15, 1986he date when the letter of allotment was issued shall be considered as the date of acquisition of the asset. \u00a0Merely because there was a change in the nature of immovable property, the principles for determining the date of acquisition could not change. \u00a0The AO was directed to consider the date of allotment on May 31, 2002 as the date of acquisition of the asset. \u00a0Thus what was transferred by the assessee was a long-term capital asset and not a short-term capital asset. \u00a0The profit or gain on sale of the asset shall be considered as long-term capital gains. Relied PCIT v. \u00a0Vembu Vaidyanathan (2019) 413 ITR 248 (Bom) (HC). \u00a0Accordingly the assessee is held to be entitle to deduction under S. 54 or 54F\u00a0 of the Act. \u00a0Matter remanded to CIT(A) to decide the issue. \u00a0AY. 2013-14)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 54 : Capital gains-Profit on sale of property used for residence\u2013Short term\u2013Long term-Date of acquisition-Date of allotment letter and not conveyance deed-Entitle to exemption. [S.2(29A), 2(29B), 2(42A), 2(42B), 45, 54F]<\/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_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-8601","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-2eJ","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/8601","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=8601"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/8601\/revisions"}],"predecessor-version":[{"id":8602,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/8601\/revisions\/8602"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=8601"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=8601"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=8601"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}