Indexation from Date of Agreement, Not Possession: ITAT Grants Relief to NRI Assessee in Long-Term Capital Gains Dispute

The ITAT has granted relief to an NRI assessee in a long-term capital gains dispute, ruling that "indexation should be from the date of the agreement, not possession." The tribunal's decision is crucial as it clarifies that the period of holding, for the purpose of calculating capital gains, begins from the date the initial sale agreement is signed. This allows taxpayers to claim a higher indexed cost of acquisition, thereby reducing their tax liability. This ruling provides a favorable precedent for taxpayers, especially those in real estate.