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2022 (9) TMI 451 - AT - Income TaxCapital gain computation - Property acquired by inheritance - cost of acquisition and benefit of indexation - Determination of Original cost and the period of acquisition of the property by the previous owner - plot/property was originally acquired by Assessee’s father in the year 2006-07 which was subsequently acquired by inheritance by the Assessee and his brothers on demise of his father - HELD THAT:- The plot/land under consideration was acquired by the Assessee’s deceased father on 05.02.2007 and after his demise, the Assessee along with his 02 brothers by dividing the assets on dated 11.12.2013, got executed a conveyance deed with M/s. BPTP Ltd. (seller). Subsequently, on 08.07.2015, the Assessee along with his two brothers sold the plot jointly on a consideration of Rs.65 lacs after paying brokerage of Rs.60,000/- and consequently received 1/3 of the said amount and accordingly claimed the benefit of cost u/s. 49 read with section 55 of the Act by working out cost of acquisition of 16,74,212/- and capital gain of Rs.4,72,455/-on the premise that the Assessee had acquired the right in plot/property on the death of his father on dated 18.11.2009. As per section 49 of the Act, where the capital asset became the property of the Assessee on any distribution of assets on the total or partial partition of a Hindu undivided family etc. etc. etc., the cost of acquisition of the asset shall be deemed to be the cost for which the previous owner of the property acquired it, as increased by the cost of any improvement of the assets incurred or borne by the previous owner or the Assessee, as the case may be. Hence, the original cost and the period of acquisition of the property by the previous owner which in the instant case is the father of the Assessee, who got allotted the property on dated 05.02.2007 from M/s. BPTP Ltd, is relevant for computation cost of acquisition and benefit of indexation for claim of capital gain. Consequently, the Assessing Officer is directed to recompute the capital gain while considering the cost of acquisition and benefit of indexation period, as the cost incurred and date of the acquisition respectively, by the father of the Assessee as on 05.02.2007.
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