COMMISSIONER OF INCOME TAX-XVI vs. K. RAMAKRISHNAN

ITA 114/2014

Page 1 of 4

$~44 * IN THE HIGH COURT OF DELHI AT NEW DELHI

Date of decision: 18th March, 2014

+ ITA 114/2014 & CM Appl.4959/2014 (delay)

COMMISSIONER OF INCOME TAX-XVI ..... Appellant Through Ms Suruchi Aggarwal, sr. standing counsel

versus

K. RAMAKRISHNAN

..... Respondent

Through

CORAM: HON’BLE MR. JUSTICE S. RAVINDRA BHAT HON’BLE MR. JUSTICE R.V.EASWAR

S. RAVINDRA BHAT, J.: (OPEN COURT)

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 2014:DHC:1460-DB

ITA 114/2014

Page 2 of 4 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 : “5. The ld. counsel for the assessee, on the other hand, has placed strong reliance on the impugned order. Besides addressing the oral arguments, he has also placed before us a brief written synopsis. It has been contended that the Assessing Officer had wrongly treated the capital gain as short-term capital gain and while doing so, had erroneously taken the date of execution of the conveyance deed in favour of the assessee as the relevant date, rather than the date of allotment of the plot to the assessee by HUDA; that undisputedly, the assessee had booked the plot in question with the HUDA on 18.06.1986 and had deposited the earnest money; that the plot was allotted to the assessee on 03.08.1999; that on receipt of the allotment letter, the assessee had deposited further amounts on various dates, as given in the chart contained in the written synopsis; that by the expiry of the period of sixty days from the date of allotment, i.e., by 03.10.1999, the assessee had deposited 96% of the tentative cost of the plot; that as per the terms and conditions contained in the allotment letter, since the assessee paid the instalment as demanded by HUDA, the assessee was to become the beneficial owner of the residential plot in question; that as per clause 5 of the allotment letter, a letter of 'acceptance was to be filed by the assessee along with an amount of Rs.10,155/-, within thirty days, thereby having paid 25% of the total cost of the plot; that this amount had to be deposited by the assessee in his capacity as the owner of the plot, on allotment, which was done, as evidenced by the receipt of payment; that as per clause 11 of the allotment letter, the right of the assessee in 2014:DHC:1460-DB