Short Overview: Consideration of 14 flats for giving up related rights in favour of developer was received by assessee within a period of three years from the date of JDA. In such circumstances, concerned flats assumed the character of ‘short-term’ capital asset and gain on such transfer was rightly assessed by AO as STCG.

Assessee entered into a JDA and declared profit on giving up his rights on 14 flats in favour of developer as long-term capital gain. AO taxed the same as short-term capital gain.

It is held that consideration of 14 flats for giving up related rights in favour of developer was received by assessee within a period of three years from the date of JDA. In such circumstances, concerned flats assumed the character of ‘short-term’ capital asset and gain on such transfer was rightly assessed by AO as STCG.

Decision: Against the assessee.