TMI Blog2012 (2) TMI 192X X X X Extracts X X X X X X X X Extracts X X X X ..... 057/Del/2011 - - - Dated:- 13-1-2012 - R P Tolani, K G Bansal, JJ. For Appellant: Shri N K Chand Sr. DR For Respondent: Mrs Lalita Krishnamurthy, CA ORDER Per: R P Tolani, JM: This is Revenue s appeal against CIT(A) s order dated 12-1-2011, relating to A.Y. 2002-03. Sole ground raised is as under. On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in deleting the addition on account of long term capital gains, without appreciating that the assessee s share in the inherited property became determined by virtue of family settlement dated 11-9-2000. Accordingly, the indexed cost of acquisition should be as per F.Y. 2000-01, when the assessee first held the property and not 1981-82. 2. Bri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cases cited at 19 SOT 251 and 81 ITD 1. In the case of CIT v. N.N. Mohan Sons (2001) 250 ITR 131, the Delhi High Court held that the expression previous owner of the property in section 49(1) would obviously mean the person who purchased the property. When the previous owner had thrown the property into the common hotchpot of the HUF, and when the HUF later sold the property, its cost of acquisition was the amount spent by the person who threw the asset into the common hotchpot. The Madrash High Court considered the issue of assets received under family settlement in the case of CIT v. Shanti Chandran (2000) 241 ITR 371. In that case it was held that when the assessee received certain shares under a settlement effected by her father, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mining the period for which the asset was held by the assessee. Therefore, it is reasonable to hold that in the case of an assessee covered under section 49(1) of the Act, the capital gains liability has to be computed by considering that the assessee held the said asset from the date it was held by the previous owner and the same analogy has also to be applied in determining the indexed cost of acquisition. 4.1. Learned counsel contends that once the assessee is held to be successor to a property by way of any mode prescribed u/s 49(1), then the capital gains liability is to be computed by holding that the asset was held by the assessee on the date it was held by the previous owner. 5. We have heard rival contentions and gone through ..... X X X X Extracts X X X X X X X X Extracts X X X X
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