Please Help: Criteria for treatment of long term capital asset
Posted Date : 09-Jan-2012 , 07:41:09 pm | Posted By Nikhil Mohan Jhanwar
Army has alloted a residential house in 2004, payment was made in instalments upto 2007, possession letter was received in 2009 ( 3 years not completed as on date)
My query is for purpose of long term capital asset, what will be the date of purchse for treating asset as long term asset for capital gain calculation.
That is period of 3 years will be calculated from which year?
Its urgent, if any with case law or circular
My query is for purpose of long term capital asset, what will be the date of purchse for treating asset as long term asset for capital gain calculation.
That is period of 3 years will be calculated from which year?
Its urgent, if any with case law or circular
Category : Income Tax | Answers : 2 | Comments : 1 | Hits : 777
Answers
Answer By: PRIYANKA
Yes, even i agree with rishabh's point of view, date of acquisition in the present case will be calculated from 2004, since it was alloted to u then, though possession letter was given later on, but the fact remains that the property was alloted in ur name in 2004 itself. This is again my opinion, which is based on practical decisions if ITO's in some cases which i have seen. But pls confirm it with others as well.
Answer By: Ashish Karundia
Dear Nikhil,
I totally agree with the views given by the other eminent members i.e. 2004 will be treated as the date of purchase for the purpose of calculation of capital gains. In this regard, you can refer the judgment of Praveen Gupta vs ACIT [137 TTJ 307]ITAT Delhi and Nita A. Patel vs ITO 132 TTJ 468 [2009] ITAT Mumbai.
Hope the above suffice.
I totally agree with the views given by the other eminent members i.e. 2004 will be treated as the date of purchase for the purpose of calculation of capital gains. In this regard, you can refer the judgment of Praveen Gupta vs ACIT [137 TTJ 307]ITAT Delhi and Nita A. Patel vs ITO 132 TTJ 468 [2009] ITAT Mumbai.
Hope the above suffice.
Comments
Rishabh Upadhyay
09-Jan-2012 , 10:00:24 pmDear pal, in my opinion since the house was allotted in 2004 itself, then the period of 3 years for calculation of long term status will start from that year only. Installment system is for convenience of payment and not a valaditary proof for ownership. Allotment is a wider term than "letter of possession". This is what sounds correct as per my knowledge. Kindly validate before suggesting anything to your client.