11 October 2008
assesse has not shown an asset in books of account while filling returns of earlier years, but he has sold the asset during the current year and has received payment through cheque, so now while calculatiing long term capital gains can he take indexed cost as the cost of acquisition ? can he do so ?
11 October 2008
In case the amount paid for the acquisition can be justified and verified to AO then the same may be claimed as Cost of Acquisition of that asset. Sometimes amount withdrawn for the acquisition of an asset is w.off to the capital account and the asset is not reflected in the B.Sheet. In such cases the cost may be claimed as the source thereof is explainable.
11 October 2008
Deed of Purchase is just the evidence of title or it may explain the amount and mode of payment. But payment is to be justified seperately from the fund flow statement of the assessee.
11 October 2008
the assesse is actually an individual, and when the asset was purchased he was not filling his return, and he has not prepared any fund flow statement. so now any solution ?
11 October 2008
eventhough he may not be filing his returns, but for the purchase of the asset to have happened there should be source of funds for the same. if the individual is in a position to explain to the assessing officer the source of funds the same is sufficient. since the query is without specifics of the amount involved, it is not possible to given any more clarity on this
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