Case Law Details
P. Chitra Vs ITO (ITAT Chennai)
ITAT Chennai held that for the purpose of computing period of holding, date of allotment should be considered, but not the final sale deed executed for conveying the title and interest in the property.
Facts-
The case of the assessee was selected for scrutiny and during the course of assessment proceedings, the AO observed that the assessee has purchased a property on 06.01.2012 from the agent Shri R. Radhakrishnan for a consideration of Rs. 4,00,000/- and sold the property on 12.04.2012 for a consideration of Rs. 85,41,286/-and thus, the period of holding is less than 36 months and accordingly, profit derived from sale of land is assessable under the head short term capital gains. Therefore, rejected arguments of the assessee that she had purchased the property by way of allotment from M/s. Baskar & Co., on 28.12.1984 and consequently, the same has been conveyed to the assessee by way of sale agreement dated 05.09.2007, and final sale deed on 06.01.2012 is only an afterthought. The AO had also rejected deduction claimed u/s. 54F of the Act on the ground that, the assessee could not complete construction of house property within three years from the date of transfer of original asset.
Being aggrieved by the assessment order, the assessee preferred an appeal before the CIT(A), however, CIT(A) rejected the same. Being aggrieved, the present appeal is filed.
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