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2018 (10) TMI 794 - AT - Income TaxEligibility to claim deduction u/s 54EC - Long term capital - assessee has inherited the property from her grandmother who died intestate on 10/12/1999 - Held that:- Some undisputed facts are that the assessee has inherited the property from her grandmother who died intestate on 10/12/1999. Nothing on record suggest that the property was first acquired by the legal heirs and thereafter transferred to the assessee. Even assuming that the property first devolved on the legal heirs and thereafter the assessee acquired the property from those legal heirs under a gift, even then in terms of Section 2(42A) Explanation 1(b) read with Section 49(1)(ii), the holding period of donor was includible while counting the assessee’s holding period. Therefore, both the situation i.e. gift as well as inheritance stand on same footing and are respectively covered by Section 49(1)(ii) & Section 49(1)(iii)(a). Viewed from any angle, the holding period of previous owner was includible in the assessee’s holding period. This being the case, we have no hesitation in holding that the nature of impugned gains was Long Term in nature and therefore, the indexation benefit as well as benefit of Section 54EC was available to the assessee. The facts on record reveal that the assessee has invested an amount of ₹ 37 Lacs in the eligible bonds as against sale consideration of ₹ 36.56 Lacs and therefore, the value of investment itself nullifies the entire sale consideration reflected by the assessee against the sale of property. - Decided in favour of assessee.
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