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2019 (1) TMI 154 - HC - Income TaxCapital gain for sale of property acquired under the will - cost of acquisition of asset calculated on the basis of the cost of acquisition by previous owner - Computation of indexed cost of acquisition on transfer of capital asset- Held that:- In the case on hand, the assessee acquired the property through the will, which was probated on October 30, 2006. The will was executed by the husband of the assessee, who died on February 22, 2006. The husband of the assessee had acquired the property prior to April 1, 1981, as such, the assessee had opted April 1, 1981 for arriving at the cost of acquisition. This issue is answered by this court in the case of CIT v. Smt. Daisy Devaiah [2014 (11) TMI 944 - KARNATAKA HIGH COURT] stating though in the definition of 'indexed cost of acquisition', the word used are, "in which the asset was held by the assessee" a harmonious reading of Sections 48 and 49 makes it clear that, for the purpose of 'Indexed Cost of Acquisition', it has to be understood as the first year in which the previous owner held the said property - Otherwise, if the date of inheritance is taken into consideration, then the cost of acquisition of the asset on that date corresponding to the market value is to be taken into consideration - Otherwise, take the cost of acquisition on the day the previous owner acquired it and apply the "Indexed Cost of Acquisition" and then calculate the capital gains and the tax payable. - decided in favour of assessee. Entitlement for benefit u/s 54F - possession of the flats is not taken by the assessee within the period of three years and as such, the assessee is not entitled for the benefit under section 54F - Held that:- If one has invested the amount received on sale of capital asset either in purchasing a residential house or in construction of a residential house, even though the transactions are not complete in all respects, the assessee would be entitled to the benefit under section 54F of the Act. See Sambandam Udaykumar case[2012 (3) TMI 80 - KARNATAKA HIGH COURT] - decided in favour of assessee.
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