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2013 (4) TMI 178 - AT - Income TaxGain arising from the sale of shares - long term capital gains (LTCG) v/s short term capital gain (LTCG) - whether for the purpose of computing LTCG, the date of acquisition of shares (assets) is to be taken or the date of conversion of shares (assets) from SIT to investment for computing the period of twelve months? - Held that:- This issue was first impugned in the case of Keshavji Karsondas vs. CIT reported in (1993 (9) TMI 83 - BOMBAY HIGH COURT) wherein held that cost of acquisition, is to be taken, i.e. the date of acquisition also followed by in the case of Kalyani Exports & Investments vs. DCIT (2001 (1) TMI 240 - ITAT PUNE). The ratio has now been followed in the case of Jannhvi Investments Pvt. Ltd. (2008 (1) TMI 314 - BOMBAY HIGH COURT) and very recently in Bright Star (2008 (7) TMI 442 - ITAT BOMBAY-H) wherein held that section 45(2) talks about conversion of investment to SIT but does not involve the reverse situation, i.e. where SIT is converted into investment. The coordinate Bench at Mumbai then held that date of conversion cannot be taken to compute LTCG. Since the case of the assessee is identical on facts, respectfully, therefore, following the above decisions no reason to deviate from the decision taken by the CIT(A) that only the date of first holding, i.e. date of acquisition of the shares as SIT, and not the subsequent period of holding as capital asset is accepted - in favour of assessee.
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