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2014 (9) TMI 1093 - AT - Income TaxIndexation on cost of acquisition of the tenancy rights as on 1.4.1981 - capital gain on transfer of capital asset acquired by the assessee from the previous owner - cost of acquisition of tenancy rights acquired by the previous owner i.e., father of the assessee without any cost in the year 1973 is stood itself at Nil to the assessee as on 1.4.1981 - Held that:- We find that there is no infirmity in the finding and the conclusion drawn by the learned Commissioner (Appeals) as now in wake of decision of the Hon'ble Jurisdictional High Court in Manjula J. Shah (2011 (10) TMI 406 - BOMBAY HIGH COURT) it is quite settled that while computing the capital gain arising out of transfer of capital asset acquired by the assessee from the previous owner, the index cost of acquisition has to be computed with reference to the year in which the previous owner first held the asset and not the year in which the assessee became the owner of the asset. Here in this case, it is undisputed fact that the tenancy right was acquired by his father much before 1st April 1981, and the assessee became the owner on distribution of assets on dissolution of the firm in view of section 49(1)(iii)(b), therefore, the cost of acquisition has rightly been held to be adopted from 1st April 1981. Thus, the order of the learned Commissioner (Appeals) is affirmed and the ground raised by the Department is dismissed.
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