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Tax Publishers L. Vivekananda v. ACIT [ITA No. 1087/Bang/2018, dt. 18-11-2020] : 2020 TaxPub(DT) 4820 (Bang.-Trib.) Indexation whether from date of allotment or from date of possession? *Facts:* Assessee was allotted a site of land in 1986 for which payment was also made in 1986. Possession of this was granted in 1998 and conveyance was done in 2004. The said land was sold on 9-5-2012. Assessee computed long-term capital gains applying indexation from 1986 when he got rights on the land. Revenue contested this and applied indexation from 1998 and sustained additions. Commissioner (Appeals) applied Balbir Singh Maini in Civil Appeal No. 15619 of 2017 (SC) : 2017 TaxPub(DT) 4346 (SC) judgment rendered in the realm of section 2(47(v) concerning part possession and concurred with the views of the assessing officer. Assessee went in higher appeal -- Held in favour of the assessee that the date of indexation be reckoned from the date of allotment and not from the date of possession or date of registration. *Applied:* CIT v. A. Suresh Rao (2014) 223 Taxman 228 (Karnataka-HC) : 2014 TaxPub(DT) 2130 (Karn-HC) CIT v. Anilaben Upendra Shah (2003) 262 ITR 657 (Guj-HC) : 2003 TaxPub(DT) 0122 (Guj-HC) Richa Bagrodia in ITA No. 3601/Mum/2012, dated 22-4-2014 (Mum-ITAT) : 2019 TaxPub(DT) 1737 (Mum-Trib) *Editorial Note:* It is the right to the asset which triggers the ownership. Possession and registration are subsequent procedural compliances -- beneficial right in the asset is from the time of allotment. It is this principle which was applied in this case.

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L. Vivekananda v. ACIT [ITA No. 1087/Bang/2018, dt. 18-11-2020] : 2020 TaxPub(DT) 4820 (Bang.-Trib.)

Indexation whether from date of allotment or from date of possession?

Facts:

Assessee was allotted a site of land in 1986 for which payment was also made in 1986. Possession of this was granted in 1998 and conveyance was done in 2004. The said land was sold on 9-5-2012. Assessee computed long-term capital gains applying indexation from 1986 when he got rights on the land. Revenue contested this and applied indexation from 1998 and sustained additions. Commissioner (Appeals) applied Balbir Singh Maini in Civil Appeal No. 15619 of 2017 (SC) : 2017 TaxPub(DT) 4346 (SC) judgment rendered in the realm of section 2(47(v) concerning part possession and concurred with the views of the assessing officer. Assessee went in higher appeal --

Held in favour of the assessee that the date of indexation be reckoned from the date of allotment and not from the date of possession or date of registration.

Applied:

CIT v. A. Suresh Rao (2014) 223 Taxman 228 (Karnataka-HC) : 2014 TaxPub(DT) 2130 (Karn-HC)

CIT v. Anilaben Upendra Shah (2003) 262 ITR 657 (Guj-HC) : 2003 TaxPub(DT) 0122 (Guj-HC)

Richa Bagrodia in ITA No. 3601/Mum/2012, dated 22-4-2014 (Mum-ITAT) : 2019 TaxPub(DT) 1737 (Mum-Trib)

Editorial Note: It is the right to the asset which triggers the ownership. Possession and registration are subsequent procedural compliances -- beneficial right in the asset is from the time of allotment. It is this principle which was applied in this case.