Effective date of purchase of disputed property by court decree


I had contracted to purchase an industrial property in 1979. An agreement of sale was made and I occupied the premises. The sale deed was to be executed on receiving ULC clearance. Since this was not done, a case for specific performance was filed in 1985 and decreed in my favor in 1995. Subsequently, decree was under a stay order pending hearing of appeal.

If the decree is now executed by the court commissioner on vacation of stay, which will be the effective date of acquisition:

Date of original agreement to sale Date of filing case for specific performance Date of decree Actual date of transfer

This question is specifically for calculating capital gain.



asked Jun 10 '11 at 02:33 by gdeepak 1111

You can consider date of possession for computation of capital gains. As after paying price and sale agreement, registration could not be done due to unavoidable circumstances.

answered Jun 10 '11 at 14:03 by Pankaj Batra 5.2k320

Thanks Pankaj! Since there seems to be diverse opinion amongst my consultant and friends, Is there any case law re this? With limited assets, I just want to make double sure! Regards Deepak
(Jun 11 '11 at 02:47) gdeepak
There have been multiple cases in which court has ruled out in favor of tax payer. Some of the cases are below: 1. Jitendra Mohan v. Income-tax Officer, Ward 28(2), New Delhi [2007] 11 SOT 594 (Delhi) 2. Jagdish Chander Malhotra. vs Income-Tax Officer. 64 ITD 251
(Jun 11 '11 at 11:04) Pankaj Batra

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Asked: Jun 10 '11 at 02:33

Seen: 3,441 times

Last updated: Jun 11 '11 at 11:04