INCOME TAX OFFICER Vs. D R SEHGAL
LAWS(IT)-1989-9-2
INCOME TAX APPELLATE TRIBUNAL
Decided on September 05,1989

Appellant
VERSUS
Respondents

JUDGEMENT

M.C. Agarwal, Judicial Member - (1.)THIS is an appeal by the Revenue arising out of the assessee's assessment for assessment year 1980-81.
(2.)We have heard the learned Departmental Representative and the learned counsel for the assessee and have perused the material placed before us.
The only point arising in this appeal is whether the profit earned by the assessee on the sale of a plot of land at Chandigarh is a long-term capital gain, as alleged by the assessee, or a short-term capital gain, as assessed by the ITO.

(3.)THE facts are that the assessee was allotted a plot of land bearing No. 129 by the Urban Estate Officer, Punjab at Chandigarh on 28-4-1972. Possession of the said plot was delivered to the assessee on 24-7-73. THE total price that the assessee was to pay for this plot measuring 500 sq. yd. was Rs. 13,500 and 15% thereof was to be paid within 30 days of the date of allotment. THE allotment letter stated that after 25% of the amount had been paid, the assessee would have to execute a deed of conveyance in the prescribed form in such manner, as may be directed by the Estate Officer. THE balance of 75% of the purchase price would be paid either in lump sum or in six equated annual instalments along with interest @ 7% p.a. THE allotment was liable to cancellation in case any declaration made in the application for allotment was found to be incorrect and the allotment was also to be subject to the provisions of the Punjab Urban Estates (Development & Regulation) Act, 1964. It was in terms of this letter of allotment that the assessee got "a sale deed executed in his favour on 31-1-1979 and thereafter sold the property on 29th October, 1979. Thus, while according to the assessee, he held the asset sold from 24-7-73, the date on which he took possession of the plot from the Estate Officer, according to the ITO the assessee became the owner of the asset only on 30-1-1979, when the Estate Officer executed a sale deed in his favour.


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