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2016 (5) TMI 67 - AT - Income TaxLTCG - Benefit of indexation - cost incurred by the previous owner - beneficial owner - CIT(A) directing to allow the cost of acquisition of the property as a market value as on April 1, 1981, and indexation allowed on that cost - rights in the impugned land in pursuance of a family arrangement - Held that:- In the given facts of this case, the assessee was the beneficial owner of the impugned asset, and in any case, on the event of family partition, there was at the best improvement in "title" of the assessee over the property, which the assessee was already having. Thus, from the above discussion, it is clear that the term "held", used in the context of section 2(42A) is of wide amplitude and scope. The asset need not be necessarily held as "owner" by the assessee. Thus, in view of the aforesaid legal position and facts of the case, it can be said that the assessee was holding this property since 1963. Even otherwise, the case of the assessee would fall in the situations envisaged in section 49(1). Therefore, in our view, in any case, the cost incurred by the previous owner shall be adopted while computing capital gains in the hands of the assessee, and also, the period of holding of the assets in the hands of the assessee should also be reckoned from 1963, and, accordingly, for the purpose of taking cost of acquisition, the value as on April 1, 1981, should be adopted in the hands of the assessee for the purpose of computing the taxable amount of capital gain. The benefit of indexation should accordingly be provided with effect from April 1, 1981. Therefore, we find that the findings of the learned Commissioner of Income-tax (Appeals) are correct as per law and facts, no interference is called for therein, and the same are upheld. - Decided against revenue
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