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TMI Blog2020 (11) TMI 207X X X X Extracts X X X X X X X X Extracts X X X X ..... esaid appeal was with regard to computation of long term capital gain. Three aspects of computation of long term capital gain was required to be examined in the appeal viz.:- i) Denial of exemption u/s. 54 of the Act; ii) adoption of guideline value u/s. 50C of the Act; and iii) not granting indexation benefit from the year in which property was acquired by the previous owner as the assessee got the property way of gift. The benefit of indexation was granted only from the year in which the assessee got the property way of gift. 3. The Tribunal in the order dated 30.12.2019 allowed the benefit of exemption u/s. 54 of the Act and further observed in the order that since deduction u/s. 54 is allowed, there would be no long term capital ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hearing in due course with notice to the parties." 5. Accordingly the appeal was taken up for hearing on the issue. We have heard the rival submissions. As far as the issue of allowing benefit of indexation is concerned, the facts are that the property which was subject matter of transfer was purchased by the father and mother of assessee under a Sale Deed dated 15.9.1980. The property was given by way of gift by the assessee on 15.3.2006. The AO allowed the benefit of indexation only from AY 2005-06 taking a view that benefit of indexation will be available only from the period when property was given by way of gift to the Assessee. It was the plea of assessee that since property was acquired in the year 1980 and since as per the provisio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le High Court of Karnataka in the case of CIT v. Smt. Asha Machaiah [2014] 48 taxmann.com 381 applied the same analogy to acquisition of property by way of inheritance holding that when an asset is acquired by way of inheritance, cost of acquisition of asset should be calculated on basis of cost of acquisition to previous owner and said cost of acquisition of previous owner has to be calculated on basis of indexed cost of acquisition as provided in Explanation (3) to section 48. 8. In our view, the reasoning applicable when property is acquired by way of inheritance and when the same is acquired by way of gift, cannot be different. We are, therefore, of the view that the assessee should be allowed the benefit of indexation from AY 198-81. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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