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2014 (5) TMI 430 - ITAT MUMBAIConfirmation of the amount as LTCG – Capital receipts in lieu of inheritance – FMV as on 01.04.1981 - Held that:- The AO has taken a firm stand that what the assessee has received is towards surrender of her right in the property - If the consideration received is towards surrender of inherited rights in property, then the same has to be taxed within the light of the provisions of Section 45 read with Sections 47 and 48 of the Act - the property is inherited the cost of acquisition of the property has to be treated as per the fair market value as on 01.04.1981- Material on record shows that the assessee has also filed a valuation report to substantiate her claim of fair market value as on 01.04.1981 - The AO has completely ignored this fact holding that the cost of acquisition has to be taken at nil, which is not a correct proposition of law - the transaction involves capital gains tax liability, it has to be computed as per the provisions of law – thus, the matter is required to be remitted back to the AO for determination of the cost of acquisition of the property as on 01.04.1981 by referring the matter to the valuation cell or in alternative accept the valuation report of the assessee and re-determine the Long term capital gains after giving a reasonable and sufficient opportunity of being heard to the assessee – Decided in favour of Assessee.
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