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2018 (1) TMI 1307 - HC - Income TaxComputation of capital gain - Tribunal accepting the cost Inflation Index taken by the assessee of the year in which the father of the assessee became the owner - property in question was transferred in favour of assessee after the death of his father through inheritance - Cost with reference to certain modes of acquisition - Held that:- The provisions of subsection (1) of section 49 of the Act would be squarely attracted and the cost of acquisition of the asset shall be deemed to be the cost for which the previous owner of the property acquired it. The material on record reveals that the property in question was acquired by the father of the assessee in the year 1945. In view of the provisions of subsection (1) of section 49 of the Act read with the Explanation thereto, since the capital asset has become the property of the assessee under a will, the cost of acquisition is deemed to be the cost for which the previous owner, namely the assessee’s father, acquired it. The record of the case shows that the property was acquired by the father of the assessee in the year 1945. Therefore, in view of the provisions of clause (iii) to the Explanation to section 48 of the Act, the indexed cost of acquisition is required to be computed by considering the cost of acquisition for the year beginning on the 1st day of April, 1981. In the light of the above discussion, it is amply clear that the view adopted by the Tribunal is in consonance with the above statutory provisions.
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