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2013 (9) TMI 886 - HC - Income TaxIndexation year for computation of long term capital gain in case of gift of capital asset – Held that:- Reliance has been placed upon the judgment in the case of Commissioner of Income Tax v. Manjula J. Shah,[ 2011 (10) TMI 406 - BOMBAY HIGH COURT], wherein it has been held that indexed cost of acquisition has to be determined with reference to the cost inflation index for the first year in which the capital asset was 'held by the assessee'. Since the expression 'held by the assessee' is not defined under Section 48 of the Act, that expression has to be understood as defined under Section 2 of the Act. Explanation 1(i)(b) to Section 2(42A) of the Act provides that in determining the period for which an asset is held by an assessee under a gift, the period for which the said asset was held by the previous owner shall be included – Assessee must be treated to hold the capital asset in the year of acquisition of previous year - The counsel for the revenue is not able to point out any distinguishing features in this case which would require not following the binding decision of this court in Manjula Shah – Decided against the Revenue.
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