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2014 (10) TMI 888 - ITAT CHENNAILong term capital gains - indexation of the cost of the property - whether the index cost for acquisition is applicable for 1981-82 or financial year 2005-06 in which the property was inherited by the assessee - assessee taking into account expenditure in connection with transfer and indexed cost of acquisition for computation capital gain - Held that:- Special Bench in the case of Manjula J Shah Vs. DCIT (2009 (10) TMI 646 - ITAT MUMBAI) which has been confirmed by the Hon’ble Bombay High Court reported in (2011 (10) TMI 406 - BOMBAY HIGH COURT) wherein held that when the assessee sells his immovable property which is acquired under gift or will, while computing the capital gain the index cost of acquisition has to be computed with reference to the year in which previous owner first held the asset and not the year in which the assessee became the owner of the asset. Therefore, the ratio of this decision is squarely applicable to the facts of the present case of the assessee. Thus we direct the AO to allow the cost inflation indexation to the assessee from 01.04.1981 for computation of capital gains. - Decided in favour of assessee
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