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2019 (3) TMI 1248 - AT - Income TaxCapital gain computation - indexation cost in cases covered by section 49 - previous owner of the property vs present owner of the property - flat received as a bequest from his deceased father - HELD THAT:- By applying the deeming provisions contained in Explanation 1(i)(b) to section 2(42A) the assessee was deemed to have held the asset from January 29, 1993, to June 30, 2003, by including the period for which the asset was held by the previous owner and, accordingly, held liable for long-term capital gains tax. While computing the capital gains, the indexed cost of acquisition had to be computed with reference to the year in which the previous owner first held the asset and not the year in which the assessee became the owner of the asset. See case of MANJULA J. SHAH (DEAD) [2011 (10) TMI 406 - BOMBAY HIGH COURT] also confirmed by SC [2018 (10) TMI 590 - SUPREME COURT]. The Hon’ble Delhi High Court in the case of Arun Shungloo Trust [2012 (2) TMI 259 - DELHI HIGH COURT] has also held that the benefit of indexation cost of improvement by previous owners in cases covered by section 49 would be allowed. - Decided against revenue.
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