13 January 2010
As per explanation (iii) to section 48, the view taken by you is correct. But there is a tribunal decision in support of Mr. Vinod Gupta's view to which I ,personally, will not agree since the act is very clear on the issue.
13 January 2010
cost to the previous owner will be your cost but the benefit of indexation will be available from the year in which you become the owner i.e. 2000-2001. Your view is correct.
13 January 2010
Manjula Shah judgment of the Special Bench of mumbai Tribunal in 318 ITR has clarified the issue.
My personal view is also the same. I believe that the act says clearly that the cost of indexation is the first year in which the asset was HELD by the assessee.
and the holding period clearly includes the period of the previous year.
You will get indexation benefits from the year in which the previous year first held the asset i.e. 1990.
See also other fav cases 1. Minu Devgan (kolkatta Tribunal) 2. Meera Khera (Mumbai Tribunal) 3. Pushpa Sofat (Chandigarh Tribunal) 81 ITD 1
14 January 2010
that i agree, wording of act and wording of tribunal decision are contradictory.
but by what opinioun i should answer in exam. taking index cost from the date when assessee 1st hold the asset or taking index cost from previous owner hold asset.
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