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2014 (10) TMI 698 - AT - Income TaxInterpretation of word previous owner - Family settlement agreement/memorandum transfer of shares - Held that:- Section 49 makes it clear that if the mode of acquisition of a capital asset was by way of gift or will then it would not mean only the last previous owner but would include the previous owner from whom the capital asset devolved on the last previous owner because indexation is to be allowed in respect of period of holding of the asset and not in relation to the individuality of the assessee following the decision in CIT vs. M/s Janhavi S. Desai [2012 (7) TMI 496 - BOMBAY HIGH COURT] - while computing the capital gains arising on sale of shares acquired by the assessee by way of gift, the indexed cost of acquisition is to be computed with reference to the year in which the previous owners first held the assets and not the year in which the assessee became the owner of the asset thus, there was no infirmity in the order of CIT(A) directing the AO to compute the capital gains in the case of the assessee by applying the indexed cost of acquisition in which the previous owners first held the shares Decided against revenue.
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