Capital Gain: For computing holding period date of allotment of property is relevant & not date of registration


In order to determine taxability of capital gain arising from sale of property, it is date of allotment of property which is relevant for purpose of computing holding period and not date of registration of conveyance deed.

Refer< [2014] 48 taxmann.com 55 (Delhi), HIGH COURT OF DELHI, Commissioner of Income-tax v. K. Ramakrishnan S. RAVINDRA BHAT AND R.V. EASWAR, JJ. IT APPEAL NO. 114 OF 2014 C.M. APPL NO. 4959 OF 2014 (DELAY) MARCH  18, 2014 >

Section 2(42A) of the Income-tax Act, 1961 – Capital gains – Short term capital gains (Immovable property) – A plot was allotted to assessee by HUDA on 3-8-1999 – Subsequently, a conveyance deed was executed and possession of plot was given on 12-12-2005 – Assessee sold said plot through registered sale deed on 9-1-2008 – Assessing Officer brought to tax capital gain arising from sale of plot as short-term capital gain – Whether in view of order passed in case of Jitendra Mohan v. ITO [2007] 11 SOT 594 (Delhi), it is date of allotment which is relevant for purpose of computing holding period and not date of registration of conveyance deed – Held, yes – Whether, therefore, amount in question was to be taxed as long term capital gain – Held, yes  [In favour of assessee]

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