Sanjay Nangia vs Income Tax Officer

This assessee’s appeal for Assessment Year: 2012-13, arises against the Commissioner of Income Tax, Appeal Addl./JCIT(A)-1, Chennai [in short, the Addl./JCIT(A)”], Chennai DIN and Order No. ITBA/APL/S/250/2025-26/1084516788(1), dated 07.01.2026 involving proceedings under section 143(3) r.w.s. 147 of the Income Tax Act, 1961 (hereinafter referred to as the ‘the Act’).

Heard both the parties. Case file perused.

Coming to the assessee/appellant solitary substantive ground in the instant appeal on perusal of the file indicates that he is aggrieved against both the learned lower authorities’ respective assessment and the lower appellate findings assessing him for having derived long term capital gain on sale/transfer an immovable property i.e. residential flat, not from the date of allotment but from that of the registered purchase deed having corresponding dates i.e., 16.06.2025 and 27.07.2026, respectively.

The Revenue vehement stand in the instant appeal is that the assessee is entitled to be assessed for short term capital gain once the above date of registered of the purchase deed than that of the original allotment of his residential flat. The assessee on the other hand quote the CBDT Circular No. 471 dated 15.10.1986 that is such an instance, the date of allotment itself fulfils of the necessary condition for claiming section 54 deduction as well. I thus adapt the very analogy herein as well direct the Assessing Officer to re-compute the assessee’s capital gains derived from the transfer of the residential flat going of original date of allotment in accordance with law. Ordered accordingly.

This assessee’s appeal is allowed.