Asset holding period should be computed from the date of allotment letter

Sanjaykumar Footermal Jain Vs ITO (ITAT Mumbai)

Holding period should be computed from the date of issue of the allotment letter and not from the date of the conveyance deed (Rasiklal M. Parikh vs. ACIT 393 ITR 536 (Bom) distinguished)

FULL TEXT OF THE ITAT JUDGMENT

This is an appeal filed by assessee against the order of CIT(A)-32, Mumbai dated 18/05/2016 for A.Y.2012-13 in the matter of order passed u/s. 143(3) of the IT Act, 1961.

2. The only grievance of assessee relates to computation of capital gain of sale of property. The AO has computed period of holding and held that assessee had earned short term capital gain whereas contention of the assessee is that property was held for more than 36 months, therefore, capital gain arose of sale of property was liable to be taxed as long term capital gains.

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