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TMI Blog2025 (4) TMI 588X X X X Extracts X X X X X X X X Extracts X X X X ..... ital loss without appreciating the fact that the appellant had not sold listed shares through any stock exchange and no STT was paid, hence appellant's claim of setoff of brought forward long-term capital loss was allowable The appellant prays that the said disallowance may kindly be deleted. Ground no.2 The Ld. CIT(A) erred in confirming the disallowance of indexation of cost from the date of purchase of the property without appreciating the fact that the appellant had acquired ownership rights on the property on 03.12.2010 and hence indexed cost should have been allowed from that date. The appellant prays that the said action may kindly be deleted. Ground no.3 The Ld. CIT(A) erred in confirming the disallowance of interest exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee on the date of the purchase agreement as the property was under construction on such date. The property was registered on 30/03/2013 for total consideration of Rs.2,75,62,400/-. 2.3 The Ld.AO observed that, the assessee sold the said property during financial year relevant assessment year under consideration for total consideration of Rs.6,11,64,057/-. The assessee took indexation benefit and computed the LTCG at Rs.1,53,87,007/- that was set of against brought forward long-term capital loss of Rs.1,53,87,007/-. Thus the total income under the head capital gains was computed at Nil. 2.4 The Ld.AO called upon assessee to furnish the payment schedule towards purchase of the property. It was submitted that the instalments became ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eration payable by the assessee as per agreement. 5.2 The Ld.AR also relied on the CBDT in its circular No 471 dated 15th October, 1986 which clarified this position by holding that when an assessee purchases a flat to be constructed by Delhi Development Authority ("D.D.A" for short) for which allotment letter is issued, the date of such allotment would be relevant date for the purpose of capital gain tax as a date of acquisition. 5.3 Ld.AR relied on following decisions in support of his claim: 1. Mr. Nitin Prakash Vs. Dy. Commissioner of Income Tax in ITA No. 817/Mum/2015 (A.Y. 2011-12) & ITA No. 1540/Mum/2018 (A.Y. 2011-12) vide order dated 27.05.2022. 2. Mrs. Sneha Bimal Parekh Vs. Principal Commissioner of Income Tax 19 in ITA No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... basis of payment made to builders/ societies/ other institutions during the different financial years towards cost of acquisition of asset. 6.3 In the present facts of the case, the assessee was issued allotment letter on 3/12/2010 relevant to financial year 2010-11. It is noted that the assessee made full payment during the assessment year 2014-15, and the document was registered in favor of the assessee. Subsequently, the said property was sold during the assessment year 2015-16. Since the date of acquisition of the property is to be reckoned from date of allotment letter, benefit of indexed cost of acquisition should be available to assessee based on payments made beginning from financial year 2010-11. Accordingly Groungno.2 raised by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of loss as is clear from page 18- 19 of paper book. The Ld.AR submitted that the assessee thus adjusted long term capital gain of Rs.3,96,16,965/- of the current year against brought forward capital loss of Rs.4,05,12,266/- from earlier years. He submitted that, assessee cannot be denied set off of the brought forward losses on sale of shares against the long-term capital gains earned by assessee against the sale of property during the year under consideration. 7.5 On the contrary, the Ld.DR relied on the orders passed by authorities below. We have perused the submissions advanced by both sides in light of records placed before us. 8. The loss were not allowed to be set off merely because the Ld.AO was of the opinion that, STT was not p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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