Case Law Details
ACIT Vs Shri Michelle N. Sanghvi (ITAT Mumbai)
When agreement to purchase is executed between the assessee and the builder, assessee gets all the valuable rights in the units to be constructed, hence, period of holding commences from the date of agreement to purchase and date of possession was irrelevant for deciding whether the gain is long term or short term.
We find that the assessee purchased flat No. 1807, Ashok Towers from M/s. Peninsula Land Ltd. vide agreement of purchase dated 18.12.2006 and sold the same on 11.05.2011. The assessee was given possession of the flat on 19.01.11. Now the question is whether the asset was held for a period of 36 months or less. In our considered view the interest in the property is created the movement the agreement to purchase is entered into in favour of the assessee accompanying with part payment. The date of possession is not material for deciding the period of holding by the assessee for the purpose whether the gain is long term or short term. The learned CIT(A) has passed a reasoned and elaborate order for coming to the conclusion that the assets held by the assessee was long term asset and directed the AO to recompute the long term capital gain by allowing indexation on the cost of acquisition taking the date of purchase as 18.12.2006.
FULL TEXT OF THE ITAT JUDGMENT
This appeal has been filed by the Revenue against the order of the CIT(A)-33, Mumbai dated 17.03.2016 for A.Y. 2012-13.
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