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2016 (4) TMI 709 - AT - Income TaxSale of tenancy right of a property - FMV adoption - Held that:- As decided in Mina Deogun (2015 (5) TMI 10 - CALCUTTA HIGH COURT ). Since the assessee, in the present case, is held liable for long-term capital gains tax by treating the period for which the capital asset in question was held by the previous owner as the period for which the said asset was held by the assessee, the indexed cost of acquisition has also to be determined on the very same basis. In the case of Raja Malwinder Singh (2011 (1) TMI 775 - PUNAJB AND HARYANA HIGH COURT ) has held that even in a case where the cost of acquisition cannot be ascertained, section 55(3) of the Act statutorily prescribes the cost to be equal to the market value on the date of acquisition, that this being the position, capital gains are not excluded even on the plea that the value of the asset in respect of which capital gains are to be charged was incapable of being ascertained, that the view based on the assumption that where the market value cannot be ascertained, capital gains cannot be applied, is not correct being against the statutory scheme, that if the 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 the market value on a specified date at the option of the assessee. Now, coming back to the facts of the case, we find that the FAA had adopted the fair market value as on 01. 04. 1981 for the property inherited by the assessee from his father which is correct - Decided against revenue
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