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2013 (5) TMI 150 - AT - Income TaxComputation of Capital Gains - Benefit of indexation - Fair market value of the capital asset - Period of Holding - Held that:- Each of the three owners through whom the assessee and her sister have derived their title, i.e., directly or indirectly, acquired the property prior to 01.04.1981. - no infirmity in the treatment of the fair market value of the asset as on 01.04.1981 as the cost of acquisition. The assessee having 50% share therein can, consequently, claim only 50% of the said value in the computation of the long term capital gains in her hands - A better way would be to compute the entire long term capital gains on the sale of house property, and allocate the capital gains so computed to the extent of 50% each in the hands of the assessee and her sister, Ms. Crystal Perry - We direct like-wise, as has in fact, the ld. CIT(A) - We decide accordingly. Regarding Period of Holding - Held that:- The Special Bench of the tribunal in the case of Dy.CIT vs. Manjula J. Shah (2009 (10) TMI 646 - ITAT MUMBAI) has confirmed the indexation benefit since 01.04.1981 onwards - The said decision by the tribunal has been since upheld by the hon'ble jurisdictional high court in the case of CIT vs. Manjula J. Shah (2011 (10) TMI 406 - BOMBAY HIGH COURT) - The holding period of the assessee in respect of the said asset, again, to be reckoned with reference to the holding by the previous owner, the indexation benefit, which is to be applied to a long-term capital asset and, further, is only for providing the benefit of inflation in the working of the capital gains for the period of holding since 01.04.1981, could not be denied to the assessee. We do not find any merit in the Revenue’s case - We decide accordingly - decided in favour of Assessee.
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