Date of possession of the co-operative flat is not relevant for determining whether it is a Long term capital asset or not.
The words "held" and "possessed" were not synonymous. Both the words are having different meanings. According to us, the word used by the Legislature is "held" and, therefore, "possession" is not relevant for computing the period of capital asset held. Relying upon certain decisions of the Tribunal, we can give opinion to the effect that the date of acquisition of the flat is the date of agreement and not the date of occupation of the flat, to treat the capital gain as long term capital gain.
As held by many court decisions including the Hilla Wadia case, possession is not material for purpose of period of holding of asset.
Please also refer to the Gujarat High Court judgement in the case of Anilaben Upendra Shah (262 ITR 657).
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