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TMI Blog2023 (2) TMI 627X X X X Extracts X X X X X X X X Extracts X X X X ..... sition of the property as the period of holding for the purpose of determining whether the asset is a long-term capital asset or a short-term capital asset, is to be taken therefrom. Honourable Supreme Court has dismissed the special leave petition filed by the by the revenue [ 2019 (7) TMI 1111 - SC ORDER] Therefore, we direct the AO to consider the date of acquisition of the property sold on 4/1/2014 from the date of allotment letter i.e. 20/7/2009 and consider the asset transferred as a long-term capital asset. Accordingly, the assessee is also eligible for deduction u/s 54 of the act.- Decided in favour of assessee. - ITA No. 1687/MUM/2022 - - - Dated:- 19-12-2022 - Shri Prashant Maharishi, AM For the Assessee : Sh. Shahank ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... but mere confirmation of the terms and conditions of the allotment letter which is issued at the time of booking and hence the period of holding is to be reckoned from the date of the allotment of the property and the said view is judicially recognized by various decisions of Courts and Tribunals. The Appellant craves leave to (i) add any new ground of appeal and/or (ii) amend, alter or delete any of the above grounds of appeal. 2. The brief facts of the case shows, that assessee is an individual engaged in the business of Fruit Merchants and Commission Agents. He filed return on 29/11/2014 declaring total income of ₹ 4,99,990/-. Return was picked up for scrutiny. 3. The Assessing Officer noted that during the year assessee h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n arising therefrom was a short term capital gain. Hence, the gain is also not entitled for deduction u/s 54 of the act. Further according to the LD AO on 23/11/2011 only Agreement to sale was executed. Assessing Officer examined the relevant documents and found that purchase of property was not in existence on 23/12/2011. The assessee further stated that the builder has given an allotment letter dated 20/07/2009. The learned Assessing Officer noted that as the property was not existence on that date the allotment letter is meaningless. Therefore, he issued a show caused notice stating that as the property sold is short term capital assets as the deduction under Section 54 is not allowed. The assessee replied on 05/12/2016. He stated that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8. We have carefully considered the rival contention and perused the orders of the lower authorities. The only issue in this appeal is whether the date of acquisition of the property is to be considered from the date of allotment issued by the builder. In this case, the fact shows that the letter of allotment was issued to the assessee on 20/7/2009, the project was commenced on 12/12/2011, agreement to sale, was entered on 23/12/2011, therefore, what should be the date of acquisition of the property for the purpose of considering whether the property transferred is a long-term capital asset or Short term capital asset. The claim of the assessee is that date of allotment letter i.e. 20/7/2009 should be the date of allotment/acquisition of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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