In Anita. D. Kanjani Vs ACIT, the ITAT Mumbai held that The mere fact that possession was delivered later, would not detract from the fact that assessee (allottee) was conferred a right to hold the property on issuance of an allotment letter. The payment of balance amount and delivery of possession are consequential acts that relate back to and arise from the rights conferred by the allotment letter upon the assessee.
Holding period should be computed from the date of issue of allotment If we do so, the holding period becomes more than 36 months and consequently, the property sold by the assessee would be long term capital asset in the hands of the assessee and the gain on sale of the same would be taxable in the hands of the assessee as Long Term Capital Gain.
Article referred: http://taxguru.in/income-tax/property-holding-period-should-be-computed-from-allotment-letter-date.html#sthash.Z8TxegiO.dpuf
Holding period should be computed from the date of issue of allotment If we do so, the holding period becomes more than 36 months and consequently, the property sold by the assessee would be long term capital asset in the hands of the assessee and the gain on sale of the same would be taxable in the hands of the assessee as Long Term Capital Gain.
Article referred: http://taxguru.in/income-tax/property-holding-period-should-be-computed-from-allotment-letter-date.html#sthash.Z8TxegiO.dpuf
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