Bharti Gupta Ramola v. CIT (2012) 72 DTR 387/251 CTR 139 (Delhi)(High Court)
The issue for consideration was whether the asset must be held for a period of more than 36 months or 12 months plus one day i.e. the date when transfer is made .The date on which the transfer is made has to be excluded .The contention of revenue was based on the language of section 2(42A) and the words “more than” used therein along with the expression “immediately preceding the date of transfer”. The court held that the term “month” has not been defined in the Act ,therefore one has to rely upon the words “calendar month” as defined in the General Clauses Act , 1897 . Section 3 (35) of the said Act defines a “month” to be month reckoned according to the British calendar .Thus if an assessee acquires an asset on 2nd January in a preceding year , the period of 12 months would be complete on Ist January , next year and not on 2nd January. If it is sold on 2nd January and if the proviso to section 2(42A) applies , it would be treated as a long term capital gains. Accordingly the appeal of the assessee is allowed. (A.Y. 2006-07)
The issue for consideration was whether the asset must be held for a period of more than 36 months or 12 months plus one day i.e. the date when transfer is made .The date on which the transfer is made has to be excluded .The contention of revenue was based on the language of section 2(42A) and the words “more than” used therein along with the expression “immediately preceding the date of transfer”. The court held that the term “month” has not been defined in the Act ,therefore one has to rely upon the words “calendar month” as defined in the General Clauses Act , 1897 . Section 3 (35) of the said Act defines a “month” to be month reckoned according to the British calendar .Thus if an assessee acquires an asset on 2nd January in a preceding year , the period of 12 months would be complete on Ist January , next year and not on 2nd January. If it is sold on 2nd January and if the proviso to section 2(42A) applies , it would be treated as a long term capital gains. Accordingly the appeal of the assessee is allowed. (A.Y. 2006-07)
No comments:
Post a Comment