CA.AZAD JAIN (CA) (201 Points)
16 July 2014An assessee acquired a property through a will in F.Y. 2011-12, which was acquired by the previous owner before 1981 and the same property was sold by the assessee in the F.Y. 2013-14. What cost inflation index will be taken by the assessee for computing indexed cost of acquisition, whether it will be 100 (for 1981-82) or it will be 785 (2011-12) ?
Prateek Gupta
(Article)
(78 Points)
Replied 16 July 2014
Consider CII of 2011-12 which is 785 as per relevant section of Income Tax Act 1961.
Bombay High Court in the case of CIT v. Manjula J. Shah (2013) 355 ITR 474
whenever certain assets are sold and particularly when such assets have been received by way of gift or through Will or by succession or by inheritance, then the cost of acquisition of the asset will be deemed to be the cost for which the previous owner of the property acquired it as increased by the Cost Inflation Index of that year in which the previous owner originally acquired the property.
nancyminda
(CA Business)
(21 Points)
Replied 16 July 2014
ashok
(assistant)
(28 Points)
Replied 16 July 2014
Tejvir Sharma
(Credit Manager)
(36 Points)
Replied 16 July 2014
mukund
(manager)
(480 Points)
Replied 17 July 2014
Pooja
(Final CA)
(502 Points)
Replied 17 July 2014
I agree with Miss Madhavi Pandit, cost to assessee in your case will be the cost of previous owner and the cost inflation index of the year in which previous owner acquired the asset would be applied.
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