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2010 (5) TMI 70 - HC - Income TaxCost of acquisition – computation of capital gains – applicability of section 49 – cost of the previous owner - assets disposed of under family arrangement - According to the assessees, by virtue of the said family arrangement, half of the company’s said property came to the share of the present assessees and the other half went to the share of another family group. The half that came to the share of the present assessees was sold for an amount of Rs 2.09 crores. The Assessing Officer assessed capital gains at the hands of the present assessees on the basis of the said seized document. - The assessees herein sought to invoke the provisions of Section 49(1) of the Income Tax Act, 1961. The said plea was accepted by the Tribunal and the revenue is in appeal before us on this issue. Held that: Section 49(1) deals with the computation of cost with reference to certain modes of acquisition. It, inter alia, provides that where the capital asset became the property of the assessee on any distribution of assets on the total or partial partition of a Hindu Undivided Family or on any distribution of assets on the liquidation of a company, then the cost of acquisition of the asset shall be deemed to be the cost for which the previous owner of the property acquired it, as increased by the cost of any improvement of the assets incurred or borne by the previous owner or the assessee, as the case may be. In the present case, we find that the asset in question, namely, C-101 Maya Puri Industrial Area was not the property of a Hindu Undivided Family. Secondly, it was owned by the said company, namely, Ambitious Gold and there was no distribution of its assets because there was no liquidation of the company. - Section 49(1) same is not at all applicable. – Decided against the assessee
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