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TMI Blog2020 (4) TMI 779X X X X Extracts X X X X X X X X Extracts X X X X ..... nt in a specific property. These rights were created in assessee s favor, by the letter of builder issued on 14/10/2006. The subsequent letter dated 25/11/2006 as well as premises ownership agreement was nothing but improvement in the said rights of the assessee which were already created vide letter dated 14/10/2006. The assessee has sold these rights vide agreement dated 18/09/2010. Therefore, what was acquired by the assessee and what has ultimately been sold by the assessee is pari-materia the same. This being the case, there would be no occasion to consider the date of acquisition of the said right as 22/06/2010. The assessee, in our opinion, acquired the right on 14/10/2006 which was ultimately sold on 18/09/2010. Therefore, sinc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f rights to a flat as Short Term disregarding the explanation given by the appellant. 2. On the facts and in the circumstances of the case and in law the CIT (Appeals) was not justified in holding that the period of holding the asset was to be calculated from the date of registration and not from the date of allotment totally disregarding the decision of the Supreme Court in the case of Gurbax Singh v. Kartar Singh and other reported in 254 1TR 112 (SC), wherein the Hon. Court has held that a document on subsequent registration will take effect from the time when it was executed and not from the date of registration which in this case is the date of booking i.e. 14.10.2006 3. The appellant submits that the date of booking is 14. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 7.96 Lacs. Thereafter, the builder vide allotment letter dated 25/11/2006 allotted said flat to the assessee. However, the agreement was registered only on 06/08/2010. In its computation of income, the assessee claimed indexed cost of acquisition by applying cost inflation index for financial year 2006-07 and worked out Long-Term Capital Gain (LTCG) of ₹ 51.80 Lacs. Against the same, the assessee claimed deduction u/s. 54 in view of purchase of another flat bearing No.1601 at Octarest, Lokhandwala Township, Akurli Road, Kandivali (E), Mumbai, which was registered for a sum of ₹ 122 Lacs on 22/10/2010. Accordingly, assessee reflected Nil LTCG on transfer of flat. 3.3 However, upon noticing that the agreemen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e property was held by the assessee. Consequently, the action of Ld. AO was upheld. Aggrieved, the assessee is under further appeal before us. 5. We have carefully perused the documents, as placed on record, concerning property transactions carried out by the assessee. Upon perusal of letter dated 14/10/2006 as issued by the builder, it is evident that the assessee has booked a flat in specie i.e. flat bearing No.504, Tower-I, Wing B in a project namely Oberoi Splendor, Village Majas, JVLR, Jogeshwari (E), Mumbai (in short Property ) at agreed consideration of ₹ 79.62 Lacs. The terms of the letter postulates termination / cancellation of booking as well as transfer of right upon certain terms and conditions. The perusal of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cidental thereto. Upon combined reading of all these documents, it would transpire that the assessee has acquired certain rights of allotment in a specific property. These rights were created in assessee s favor, by the letter of builder issued on 14/10/2006. The subsequent letter dated 25/11/2006 as well as premises ownership agreement was nothing but improvement in the said rights of the assessee which were already created vide letter dated 14/10/2006. The assessee has sold these rights vide agreement dated 18/09/2010. Therefore, what was acquired by the assessee and what has ultimately been sold by the assessee is pari-materia the same. This being the case, there would be no occasion to consider the date of acquisition of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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