Dear Mr Preet
I understand your society was formed in 2003 and you have made the payment in 2003 itself. Then as held by many court decisions including the Hilla Wadia case cited earlier, posession is not material in for purpose of period of holding of asset.
Please refer to Gujarat High Court in the case of Anilaben Upendra Shah (262 ITR 657), which squarely covers your case.
The facts in this case were that on September 6, 1979, by depositing a sum of Rs 5,000 which included entrance fees of Rs 55 and share capital of Rs 250, the assessee had become a member of a co-operative housing society. A flat was allotted to her by the society in November 1979. The total cost of the flat after excluding the loan amounting to Rs 30,000 came to Rs 67,757.
Possession of the flat was however delivered by the said society to the assessee only in October 1981. Thereafter, the assessee entered into an agreement to sell the flat on October 8, 1982, and in performance of such contract the assessee sold the same on December 4, 1982, for Rs 1,40,000. The Assessing Officer subjected an amount of Rs. 42,243 to tax as short-term capital gains.
The Commissioner (Appeals) held that the date of acquisition of the flat was the date of the agreement and not the date of occupation of the flat and directed the Assessing Officer to treat the capital gains as long term and grant deduction under section 80-T of the Act to the assessee. The Tribunal confirmed the view of the Commissioner (Appeals).
On a reference, the Gujarat High Court observed that the assessee had held the shares and allotment of the flat in the co-operative housing society for a period of more than 36 months. Accordingly, the capital gain in question was rightly held by the Tribunal to be long-term in nature.
Hope this resolves your query.