Anil Murarilal Agarwal Vs ITO (ITAT Mumbai)
ITAT Mumbai held that date of allotment letter, rather than date on which purchase deed of conveyance was entered, should be considered for holding period of the property. Accordingly, appeal of assessee allowed.
Facts- During the assessment proceeding, AO noted that during year under consideration the assessee registered the purchase and sale of two properties. However, AO noted that short term capital gain was not declared by the assessee.
AO rejected the contentions of the assessee and assessed the difference of sale consideration and purchase consideration recorded in registered sale deeds amounting to Rs. 1,42,86,671/- as short term capital gain in the assessment order passed u/s 143(3).
CIT(A) also noted that, firstly the assessee had purchased flats in violation of the SRA Scheme, Secondly, the assessee failed to furnish any agreement to the effect of transfer of the property by the assessee in assessment year 2010-11, Thirdly, the assessee failed to furnish any document/ evidence in support of the possession of the immovable property under consideration.
Conclusion- Held that the date of the allotment letter should be considered for holding period of the property. Therefore, the said date to be treated as date of the purchase of the property rather than the date on which purchase deed of conveyance was entered into the year under consideration.
