ITO Vs Smt. Meeta Bhavesh Ganatra (ITAT Mumbai)
We find that the factual findings recorded by the ld. CIT(A) that the allotment letters of Galas were issued to the assessee on 22/10/2007; that the entire consideration for purchase of said Galas was paid by the assessee before the allotment letter through adjustment of loan from sister concern and payments from the bank accounts of the husband of the assessee, remain uncontroverted by the revenue before us. We find that the ld. CIT(A) had reckoned the specified date to be the date of allotment i.e., 22/10/2007 and accordingly held that assessee had held Galas for more than three years before the date of transfer and accordingly treated the same as long term capital gain and consequently granting benefit of exemption u/s.54F of the Act. It is not in dispute that assessee had indeed made investment within the prescribed time in a new residential property making her eligible to claim benefit of exemption u/s.54F of the Act. The only dispute to be decided is whether the resultant gain on sale of industrial Galas by the assessee would be long term capital gain or short term capital gain which in turn had to be decided by taking a specified date as the date of allotment of Galas or date of registration of Galas. We find that the issue under dispute is squarely addressed by the decision of Hon’ble Jurisdictional High Court in the case of Pr. Commissioner of Income Tax vs. Vembu Vaidyanathan in Income Tax Appeal No.1459 of 2016
Section 54F Holding period—Computation from the date of allotment or from the date of possession
FULL TEXT OF THE ITAT JUDGEMENT
This appeal in ITA No.5149/Mum/2017 for A.Y.2013-14 arises out of the order by the ld. Commissioner of Income Tax (Appeals)-41, Mumbai in appeal No.CIT(A)-41/IT-459/15-16 dated 01/05/2017 (ld. CIT(A) in short) against the order of assessment passed u/s.143(3)of the Income Tax Act, 1961 (hereinafter referred to as Act) dated 19/02/2016 by the ld. Income Tax Officer 30(2)(3), Mumbai (hereinafter referred to as ld. AO).
2. The only issue to be decided in this appeal is as to whether the date of allotment of property could be reckoned as a specified date as against date of possession / registration of the property for the purpose of determining the period of holding of property and consequently gain to be taxed as long term capital gains or short term capital gains in the facts and circumstances of the case.
3. The brief facts of this issue are that the assessee purchased 7 Nos. of Industrial Galas at Malad, Mumbai from one Builder viz. Homeland Realtors arid Developers Private Limited in the year 2007 jointly with her husband Mr. Bhavesh Natwarlal Ganatra at an agreed consideration of Rs. 53,75,700/-.
The details of the same are as follows:
