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2021 (4) TMI 114 - AT - Income TaxCapital gain tax - cost of acquisitionn - Date of index cost of acquisition for computation of capital gain - whether should be the year in which the previous owner acquired the property and not the year in which the assessee became the owner of such property? - AO held that the property in question has devolved onto the assessee upon the dissolution of the partnership firm on account of the death of his father and in such a situation, the cost in the hands of the assessee would be the cost at which the firm transfers its assets in the hands of a partners after paying the due capital gains tax, if any, that arises on dissolution of the firm as per provisions of section 45(4) - AO estimated the value of the property for the purpose of calculation of long term capital gains in the hands of the assessee by allowing cost inflation index from the financial year 2000-01- HELD THAT:- To ascertain the facts, we had asked the Ld. counsel to file a copy of ‘Deed of Conveyance’. The same was filed on 15.02.2021. The facts in the present case and in Shri Nandlal R. Mishra are similar [2015 (10) TMI 1074 - ITAT MUMBAI] wherein held t in the case of an assessee covered under s. 49(1) of the Act, the capital gains liability has to be computed by considering that the assessee held the said asset from the date it was held by the previous owner and the same analogy has also to be applied in determining the indexed cost of acquisition. For determining the capital gain, the cost of acquisition of capital asset is crucial. We hold that the long terms capital gains has to be from the date from which the capital asset in question was held by the previous owner and the indexed cost of acquisition also has to be determined on the very same basis, consequently, the indexed cost of acquisition has 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 such asset. See Commissioner of Income-tax Versus Manjula J. Shah [2011 (10) TMI 406 - BOMBAY HIGH COURT] - Decided in favour of assessee.
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