**Case Details**
**Case Number:** ITA No. 1807/Del/2022
**Appellant:** Bhupinder Singh Julka, New Delhi
**Respondent:** ACIT, Circle Int Tax 2(1)(2), Delhi
**Assessment Year:** 2018-19
**Date of Order:** August 07, 2023
**Order Type:** Final Tribunal Order
**Case Summary**
In this Income Tax Appellate Tribunal (ITAT) order, Bhupinder Singh Julka contested the addition of short-term capital gains tax imposed by the Assessing Officer (AO) on the sale of an office space. Julka asserted that the sale qualified for long-term capital gain taxation due to his acquisition of the property in 2007.
**Facts of the Case**
Bhupinder Singh Julka, a non-resident Indian, filed his income tax return for the assessment year 2018-19, declaring a gross total income of INR 5,37,371. The return included a long-term capital loss of INR 81,42,760 arising from the sale of the office space. However, the case was selected for scrutiny, and the AO disputed the long-term capital loss claim.
The AO contended that the final payment for the property was made on February 23, 2018, establishing the effective date of purchase as the same date. Consequently, the AO classified the sale as a short-term capital gain and added INR 3,37,202 to Julka’s income.
Julka challenged this assessment before the DRP (Dispute Resolution Panel), arguing that the allotment letter received in August 2008 marked the property’s acquisition date. He emphasized payments made throughout the period from 2007-08 to 2017-18 for indexation purposes.
The DRP directed the AO to verify the property title transfer date and reconsider the claim based on the schedule of payments.
**Tribunal Order**
After reviewing the documents, the Tribunal sided with the AO. The Tribunal pointed out that the buyer’s agreement stipulated the execution and registration of the sale deed only after receiving the full sale consideration. Additionally, a lease agreement dated May 8, 2017, presented Julka as the absolute owner of the property. The Tribunal concluded that Julka could only transfer the property as an absolute owner after acquiring the title, which, according to them, happened upon completing the payments.
**Grounds of Appeal Raised by Bhupinder Singh Julka** Julka contested the Tribunal’s order on the following grounds:
**Conclusion**
The ITAT order upheld the AO’s assessment, classifying the sale of the office space as a short-term capital gain and rejecting Julka’s claim for long-term capital gain treatment. The Tribunal’s reasoning centered on the completion of payments determining the property’s acquisition date.
Bhupinder Singh Julka vs ACIT, Circle-Int. Tax. 2(1)(2), Delhi – Final Tribunal Order
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