Sale of Flat Classified as Long-Term Capital Gain Based on Previous Owner’s Holding Period: ITAT

The Income Tax Appellate Tribunal (ITAT) overturned a Commissioner of Income Tax (Appeals) [CIT(A)] order, classifying the sale of a flat as a long-term capital gain based on the holding period of the previous owner. The tribunal ruled that the holding period should include the time the previous owner held the property, thereby qualifying the transaction for long-term capital gains treatment. This decision affects the calculation of capital gains tax on inherited or transferred properties.