COMMISSIONER OF INCOME-TAX Vs. JINDAS PANCHAND GANDHI

JUDGEMENT

(1.) THE following question has been referred by the Income -tax Appellate Tribunal, Ahmedabad Bench 'A', under Section 256(1) of the Income -tax Act, 1961 ('the Act'), at the instance of the Commissioner of Income -tax, Baroda.

(2.) THE assessment year is 1985 -86 and the relevant accounting period is S. Y. 2040. The assessee, an individual, became a member in Venus Apartments (Galaxy Co -operative Housing Society). He was allotted flat No. G. 8 in the building of the society known as Galaxy Bungalow vide resolution No. 5 dated November 4, 1980, passed by the managing committee of the society. The assessee paid the purchase price of the property in instalments as follows : Amount(Rs.) Date5,025 11 -10 -1980 025 11 -10 -1980 50,000 19 -03 -198125,000 29 -07 -1981200 15 -11 -198150,000 21 -07 -198225,000 11 -10 -1982

(3.) ON April 30, 1984, the flat was sold by the assessee for a consideration of Rs. 3,75,000. The assessee worked out long -term capital gains at Rs. 1,59,395. The Assessing Officer did not accept the stand of the assessee that the assessee had become the owner of the property as per resolution dated November 4, 1980. According to the Assessing Officer the assessee had held the property for a period of less than 36 months and as such was liable to short -term capital gains tax. The assessee carried the matter in appeal before the Commissioner of Income -tax (Appeals) who upheld the assessment on this count.