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2014 (6) TMI 14 - HC - Income TaxComputation of capital gain - FMV u/s 55(3) - fair market value of the assets as on 1.4.1981 – assessee acquired the property by succession from previous owner – No cost of acquisition of acquired land – Held that:- Following The Commissioner of Income Tax, Patiala Versus Raja Malwinder Singh, Patiala [2011 (1) TMI 775 - PUNAJB AND HARYANA HIGH COURT] section 55(3) statutorily prescribes the cost to be equal to the market value on the date of acquisition - This being the position, capital gain is not excluded even on the plea that value of the asset in respect of which capital gain is to be charged was incapable of being ascertained –section 55(3) provides for a situation where value of the asset acquired could not be ascertained - If market value can be ascertained, it has to be taken to be equal thereto and if the value cannot be ascertained, it has to be equal to market value on a specified date at the option of the assessee - It is not the case of the assessee that land had no market value at all on the date of its acquisition - even where the cost of acquisition of capital asset cannot be ascertained but the asset has a market value, capital gain will be attracted by taking the cost of acquisition to be fair market value as on January 1, 1954, or on date statutorily specified or at the option by the assessee, the market value on the date of acquisition – no substantial question of law arises for consideration – Decided against Assessee.
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