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Issues:
1. Dispute regarding short term capital gain on transfer of plot. Analysis: The appeal before the Appellate Tribunal ITAT Chandigarh revolved around determining 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 submission of an allotment letter by mistake. 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 plot allotment in 1971 and received the allotment letter in 1980. The plot was registered in favor of another individual, not the assessee, and subsequently sold to a third party. The lower authorities treated this transaction as a short-term capital gain, as the plot was allegedly purchased and sold within two months. The assessee contended that since there was no sale deed executed in his favor, but directly in favor of the buyer, there should be no capital gain. He cited legal precedent to support 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 the Punjab Urban Estates (Sales of Sites) Rules, 1965, to support this position. After considering the arguments, the Tribunal found certain uncontroverted facts. The allotment application was made in 1971, and the deed of conveyance was to be executed only upon full payment. The sale deed for the plot was executed directly in favor of the buyer, not the assessee. Citing legal precedent, the Tribunal concluded that without the sale deed being executed in favor of the assessee, the transaction could not be deemed a short-term capital gain. Consequently, the action of the lower authority was reversed, and the assessee's appeal was allowed.
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