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2019 (4) TMI 407 - ITAT MUMBAIComputation of long term capital gain - property inherited - indexed cost of acquisition u/s 49 - assessee had become the owner of the property after the death of his father and mother - whether, the benefit of indexation has to be taken from the year in which the asset was first held by previous owner and not from the year in which the asset was held by the assessee? - HELD THAT:- As MANJULA J. SHAH (DEAD) [2011 (10) TMI 406 - BOMBAY HIGH COURT] held the expression “held by the assessee” used in Explanation (iii) to section 48 has to be understood in the context and harmoniously with other sections and as the cost of acquisition stipulated in section 49 means the cost for which the previous owner had acquired the property, the term “held by the assessee” should be interpreted to include the period during which the property was held by the previous owner. Hence, indexation of cost of improvement shall be allowed from the date the previous owner acquired that asset. Further, the Hon’ble Delhi High Court in case of Arun Shungloo Trust [2012 (2) TMI 259 - DELHI HIGH COURT] has also held that 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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