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2015 (10) TMI 2107 - AT - Income TaxCapital gains tax - whether the amount received by the assessee from the sale of property, the title of which was acquired by way of adverse possession and which did not involve any acquisition costs, can be subjected to the capital gains tax or not ? - Held that:- The issue is now squarely covered by the direct decision of in the case of CIT vs. Star Chemicals (Bombay) Pvt. Ltd. (2009 (8) TMI 1143 - BOMBAY HIGH COURT) wherein while answering the question of chargeability of capital gains in relation to an asset/title which was acquired by way of adverse possession, has held that the Tribunal was right in holding that for want of acquisition cost, capital gains tax would not arise. Since a direct decision of the Hon’ble jurisdictional Court in relation to the chargeability of capital gain on asset acquired by way of adverse possession is available, hence, the same is binding upon this Tribunal. We therefore hold that no capital gain are chargeable to tax in relation to the asset acquired by way of adverse possession. - Decided in favour of assessee.
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