Cost of acquisition of an investment asset.
53. (1) Unless otherwise provided, the cost of acquisition of an investment asset, shall be-
(a) the purchase price of the asset; or
(b) at the option of the person, the fair market value of the asset on the 1st day of April, 2000, if the asset was acquired by the person before such date.
(2) The cost of acquisition of an investment asset specified in column (2) of the Seventeenth Schedule, acquired by the mode specified in column (3) of the said Schedule, shall be the cost specified in column (4) thereof.
(3)The cost of acquisition of an investment asset acquired by a person by any of the special modes of acquisition, shall be—
(a) the cost at which the asset was acquired by the previous owner; or
(b) at the option of the person, the fair market value of the asset on the 1st day of April, 2000, if the asset was acquired by the previous owner or the person before such date.
(4) The cost of acquisition of an investment asset referred to in clause (h) or clause (i) or clause (j) of sub-section (2) of section 58 shall be the fair market value or the stamp duty values as the case may be, which has been taken into account for the purposes of the said clauses.
(5) The cost of acquisition of an investment asset being an undertaking or division of a business transferred by way of a slump sale referred to in sub-clause (l) of clause (267) of section 314 shall be the net worth of such undertaking or division.
(6) The cost of acquisition of an investment asset forming part of a bundle of investment assets acquired by any participant, on distribution of the asset to him on account of his retirement from any unincorporated body, shall be the amount determined in accordance with the formula—
A - (B + C)
where,
A= the amount payable to the participant as appearing in the books of account of the unincorporated body on the date of distribution;
B= any amount attributable to the change in the value of the bundle of investment asset on account of revaluation of the bundle, if any, up to the date of distribution; and
C= the cost of acquisition of any other asset, forming part of the bundle acquired by the participant, on distribution of the asset to him on account of his retirement from any unincorporated body if the cost of acquisition has been allowed as a deduction under section 51 in any earlier financial year.
(7) The cost of acquisition of an investment asset shall be "nil", in relation to—
(a) an investment asset which is self-generated;
(b) the asset which is acquired by way of compulsory acquisition and the compensation or consideration for such acquisition is enhanced or further enhanced by any court, Tribunal or other authority; or
(c) the asset where the cost of acquisition to the person or the previous owner, if any, cannot be determined or ascertained, for any reason.
(8) In sub-section (3), "previous owner" in relation to any investment asset owned by a person means the last previous owner of the investment asset, who acquired it by a mode of acquisition other than those referred to in clause (237) of section 314.
