Case Law Details
Sumit Export Vs ACIT (ITAT Mumbai)
ITAT Mumbai held that the date of acquisition of the property under consideration was to be reckoned from the date of the allotment letter and capital gain will be calculated accordingly.
Facts-
During the assessment proceedings, Assessing Officer observed that vide Sale Deed dated 19.05.2012 assessee entered with M/s. Veer Gems and sold the office premises
AO observed that as per the working submitted by the assessee, assessee has shown acquisition of property in Financial Year 1998-99 and in subsequent few years assessee has carried out improvement in the property. However, he observed that when pursing the sale agreement, he observed that the assessee had received allotment of the above said premises only on 29.07.2010 as such the asset so transferred becomes short term capital asset on the date of transfer i.e.,19.05.2012. Therefore, the capital gain on sale of this asset would constitute short term capital gain. Accordingly, the assessee was asked to why the premises so transferred should not be treated as short term capital gain. AO rejected the reply of the assessee and confirmed the addition.
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