Facts of the case:
- The assessee filed its return of income for the AY 2009-10 and claimed long-term capital gain arising out of capital asset in the nature of a residential unit.
- During the course of assessment, the Assessing Officer came to the conclusion that the gain was a short-term capital gain.
- The assessee argued that the residential unit was acquired on the date on which the allotment letter was issued by the builder which was on 31-12-2004.
- The Assessing Officer however contended that the transfer of the asset in favour of the assessee would
be complete only on the date of agreement which was executed on 17-5-2008. - On appeal, the Commissioner (Appeals) as well as the Tribunal held in favour of the assessee.
- On further appeal to the High Court, it held the following:
Judgement: - The CBDT in its Circular No.471, dated 15-10- 1986, had clarified that when an assessee purchases a flat to be constructed by Delhi Development Authority (D.D.A.) for which allotment letter is issued, the such date would be considered as the date of acquisition. This aspect was further clarified by CBDT in its later Circular No. 672, dated 16-12-1993 clarified that if the terms of the schemes of allotment and construction of flats/houses by the cooperative societies or other institutions are similar to those mentioned in para 2 of Board's Circular No.471, dated 15-10-1986, such cases may also be treated as cases of construction for the purposes of sections 54 and 54F of the Income-tax Act. It can thus be seen that the entire issue was clarified by the CBDT in its above mentioned two Circulars, dated 15-10-1986 and 16-12-1993. In terms of such clarifications, the date of allotment would be the date on which the purchaser of a residential unit can be stated to have acquired the property. In that view of the matter, Commissioner (Appeals) and the Tribunal correctly held that the assessee had acquired the property in question on 31-12-2004 on which the allotment letter was issued. 2. Considering the clarifications provided already vide various circulars as stated above, the appeal is dismissed.
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