Topic

allotment letter

2 articlesLatest October 2026
Section 2(42A) IT Act | Holding period for capital gains starts from allotment letter date, not registration : ITAT Surat
Case Law Analysis
|Income Tax Appellate Tribunal

Section 2(42A) IT Act | Holding period for capital gains starts from allotment letter date, not registration : ITAT Surat

The ITAT Surat ruled that for capital gains computation under Section 2(42A) of the Income Tax Act, the holding period commences on the date of the allotment letter, not the date of registration. This clarification enables purchasers of builder flats to qualify for long term capital gain treatment and claim exemption under Section 54.

Section 2(47) Transfer via Surrender of Allotment Rights Triggers Capital Gains, Not Unexplained Income Under Section 69A : ITAT Mumbai
Case Law Analysis
|Income Tax Appellate Tribunal

Section 2(47) Transfer via Surrender of Allotment Rights Triggers Capital Gains, Not Unexplained Income Under Section 69A : ITAT Mumbai

ITAT Mumbai rules that surrendering rights in a capital asset (via allotment letter) constitutes a 'transfer' under Section 2(47), making capital gains taxable under Section 45. This disqualifies additions under Section 69A for unexplained income and preserves Section 54 exemption eligibility for assessees.

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