#Long Term Capital Asset

The ITAT Bangalore has ruled that capital gains from the sale of multiple residential properties qualify for Section 54 exemption on a per-property basis, allowing taxpayers to reinvest gains from each sold flat into separate residential purchases without being capped at one house. This clarifies a long-standing ambiguity and benefits high-net-worth individuals and real estate investors who liquidate multiple units in a single financial year.

ITAT Delhi rules that the holding period for long-term capital gains on residential flats commences from the date of allotment, not possession, overturning the Assessing Officer’s short-term capital asset treatment. This decision clarifies tax liability for property investors and aligns with jurisdictional precedents, impacting capital gains calculations under the Income Tax Act.

ITAT Mumbai rules that for capital gains computation under Section 50C, the stamp duty value as on the date of the Memorandum of Understanding (MOU) applies, not the registration date, if procedural delays cause the transfer. This holding impacts taxpayers facing delays in property transfers, ensuring fair valuation for tax purposes.