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Issues:
1. Dispute regarding short-term capital gain on the transfer of a plot. Analysis: The appeal before the Appellate Tribunal ITAT Chandigarh revolved around the issue of whether the assessee had made a short-term capital gain on the transfer of a plot. Initially, the case was disposed of based on the contention that no sale deed was executed in favor of the assessee. However, upon realizing the error, the order was recalled, and the case was reheard by the Division Bench. The assessee, who was also the advocate in this case, argued that he had applied for the allotment of a plot in Mohali in 1971 and received the allotment letter in 1980. The plot was registered in the name of another individual, and the assessee subsequently sold his right to acquire the plot. The lower authorities treated this transaction as a short-term capital gain due to the quick turnover between the purchase and sale dates. The assessee contended that since no sale deed was executed in his favor, there should be no capital gain, citing legal precedent in support of his argument. On the other hand, the departmental representative argued that the assessee acquired and sold a plot within a short period, constituting a short-term capital gain. Reference was made to relevant rules governing the sale of sites in Punjab. After considering the submissions, the Tribunal found that the sale deed for the plot was never executed in favor of the assessee but directly in favor of the buyer. As per legal precedent, title to the property does not pass until the conveyance is executed and registered. Therefore, the Tribunal concluded that the transaction did not amount to a short-term capital gain and reversed the decision of the lower authorities. In conclusion, the Tribunal allowed the assessee's appeal, ruling in favor of the assessee and rejecting the short-term capital gain assessment made by the lower authorities.
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