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2018 (2) TMI 1378 - HC - Income TaxApplication of provision of section 48 Explanation (iii) - whether inflation index would apply for the first year when the asset was first held by the assessee - computing the capital gains arising on transfer of a capital asset acquired by the assessee under a gift - shares which are the subject matter of capital gains tax were purchased by the father of the assessee on 01.08.1989. They were gifted by him to his son on 15.03.2009. The son i.e. the assessee sold the shares on 19.03.2009 - what would be the relevant date for ascertaining the cost of acquisition of shares for the purpose of indexation. Held that:- The issue is no longer res-integra. Division Bench of this Court in case of Commissioner of Income Tax v. Rajesh Vitthalbhai Patel reported in (2013 (7) TMI 413 - GUJARAT HIGH COURT) held that if the interpretation of the counsel for the Revenue was correct, this later reference to the cost of improvement borne by the assessee would not have been necessary since section 48 itself would take care of any improvement on the capital asset to be included for the cost of acquisition. The interpretation sought to be given by the Revenue would be unacceptable because there is no provision under which the cost of acquisition in the hands of the assessee in cases such as gift on the date of acquisition of the property can be made and found in the Act. A Serious roadblock would be created if such property is acquired through Will and would therefore have no reference to its actual cost on the date of operation of the Will. - Decided against revenue.
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