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2016 (11) TMI 1525 - ITAT JAIPURCapital gain computation - adoption of cost of acquitsition as NIL - land in question was allotted to the assessee by the Government of India under the Rehabilitation Scheme - Held that:- Hon’ble Madhya Pradesh High Court in the case of CIT vs. HH Maharaja Sahib Lokendra Singh Ji [1986 (1) TMI 37 - MADHYA PRADESH High Court] has held that where A acquires some property by way of gift or reward, for instance jagirs from a ruler and the property passed on by inheritance to generations and the same is sold even though for a valuable consideration, in such a case because A had not acquired it at some cost in terms of money, it would not attract capital gain in such a transaction of sale, there being no ‘gain’ as such. Hon’ble Madras High Court in the case of CIT vs. HH Sri Raja Rajagopala Thandaiman,(2005 (10) TMI 45 - MADRAS High Court) affirmed the view of the Tribunal by holding that there was no capital gain assessable in respect of transfer of the site and palace at Pudukkuttai belonging to the assessee for a consideration of ₹ 17,76,020/- on the ground that there was no cost of acquisition. In the circumstances, the amendment instead of working to the advantage of the Revenue goes to indicate that the Legislature does not want to bring within the purview of tax net all the assets (except the specified assets) which does not have cost of acquisition and the entire sale consideration cannot be treated as profits and gains chargeable under the head ‘Capital gains’ by adopting the cost of acquisition as Nil. - Decided against revenue
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