Cost of acquisition

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 January 2014 In case of Section 56(2)(vii)(b): what would be the cost of acquisition in the hands of the shareholder as amended by finance act 2012 effective from 01/04/2013:

Nikhil Kaushik

Nikhil Kaushik (Expert)
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02 January 2014 the cost in the hands of the shareholder shall remain same as the amount paid by him or her. section 56(2)(viib) doesn't decrease the cost in shareholder's hands. it only creates a notional income in the hands of the company

Querist : Anonymous

Querist : Anonymous (Querist)

03 January 2014 Thank you for your reply.

Is there any reference to any section /circular/ notification/clarification/ Case Law available with respect to reply given by you.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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03 January 2014 i believe section 56(2)(viib) is self explanatory. there is no corresponding amendment under capital gains to include such notional addition in companies income to the cost of the acquirer! Apply logic.

Querist : Anonymous

Querist : Anonymous (Querist)

03 January 2014 Thank You for your quick response.

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