COMMISSIONER OF INCOME TAX-XVI Vs. K. RAMAKRISHNAN

JUDGEMENT

(1.) The revenue claims to be aggrieved by the order dated 17.5.2013 of the Income Tax Appellate Tribunal (ITAT). The revenue's appeal questioning the deletion of Rs.55,72,612/- by the CIT(Appeals) was dismissed. It is urged that the findings of the Tribunal, in effect upholding the assessee's contention that the amount sought to be taxed was in fact a long term capital gain is not justified. The learned counsel invited our attention to the provisions concerned i.e. section 54EC and submitted that given the circumstance of the case especially the relevant dates set out in para 7 of the impugned order, it could not be said that the assessee had acquired interest of the kind that can enable him to say that he "held" the asset for more than 36 months to entitle him to the benefit of long term capital gain.

(2.) In this case the relevant facts relating to the acquisition of the capital asset, i.e., the HUDA plot and its ultimate disposal of the assessee was considered by the Tribunal and discussed as follows :

(3.) In this case the assessee acquired possession of the plot on 12.12.2005 and sold through a registered sale deed dated 9.1.2008. This Court is of the opinion that having regard to the findings recorded by the Tribunal, the assessee had acquired beneficial interest to the property at least 96% of the amount was paid i.e. by 3.10.1999. This Court is supported in its findings by a Division Bench ruling of the Punjab and Haryana High Court in Madhu Kaul vs. CIT, (ITA 89/1999 decided on 17.1.2014).