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2015 (1) TMI 783 - ITAT HYDERABADLong Term Capital Gain - assessee executed a release deed of property - whether ‘release’ is regarded as a transfer for the purpose of capital gains, when cost of acquisition to appellant is nil and when there is no cost of acquisition, whether capital gain arises - Held that:- When there is a case to which computation provision cannot apply at all, it is evident that such a case was not intended to fall within the charging section. On a reading of computation provision as contained u/s 48 of the Act, it is clear that while computing capital gain, the cost of acquisition has to be reduced. The cost of acquisition to assessee in the present case cannot be arrived at u/s 49 of the Act as the transaction entered into by assessee does not fall within any of the categories mentioned therein. Even the cost of acquisition cannot be taken to be ‘nil’ in terms with section 55(2) of the Act, as it is not coming within the category of transaction mentioned therein. In the aforesaid facts and circumstances, when undisputedly, there is no cost of acquisition to assessee, the computation provision fails, accordingly, capital gain cannot be computed. In the aforesaid view of the matter, assessee, in the peculiar facts and circumstances of the case, cannot be charged to LTCG on the value of consideration deemed to have been received on execution of release deed. Accordingly, we do not find any infirmity in the order of ld. CIT(A), which is upheld. - Decided in favour of assessee.
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