Case Law Details
ACIT Vs Sanjay Kumath (ITAT Indore)
In the case of ACIT Vs. Sanjay Kumath, heard at the Income Tax Appellate Tribunal (ITAT) Indore, the central issue revolved around the eligibility of Section 54F deduction. The dispute centered on determining the period of holding for a flat, considering the date of the allotment letter as the starting point for the deduction. The case concerned the assessment year 2009-10.
Detailed Analysis:
The case involved an appeal by the Revenue and a cross-objection by the assessee against the order passed by the CIT(A) on February 18, 2013. The primary point of contention was the categorization of the capital asset (a flat) sold by the assessee as a long-term capital asset, which would enable the assessee to claim a deduction under Section 54F of the Income Tax Act.
The facts in brief were as follows: The assessee received an allotment letter on January 22, 2005, for Flat No. 1202 at Raheja, Tipco-I, Malad, Mumbai. This letter of allotment stated that the builder, M/s. K. Raheja Universal Pvt. Ltd., Mumbai, agreed to sell the flat to the assessee for a specified amount. The assessee signed the allotment letter as an agreement with the builder and made an initial payment. Subsequently, additional payments were made, and the flat was sold on March 5, 2009, with a claim for deduction under Section 54F for the long-term capital gain arising from the sale.
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