Query in capital gains

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swetha (Querist)
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02 March 2016 "x" inherited a building from his father "A" in 18\9\2007.His father acquired the building in the process of dissolution of firm in which he was a partner on 24\9\1990. Now "X" wants to sell the building. In this case what would be the COA to "x".But it was not acquired by "A" as a settlement rather it was given to him when all the partners distributed assets remaining after priorities as per order of liquidation. My question is as "A" doesn't know his COA, will COA of the firm be the COA of "A" ?If so firm purchased it in 1970 and it further revaluated it by 1990. In that case we have to take revaluated value or as it is before 1981 its MV ON 1981?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 March 2016 The COA will be. What it costed to his father.

swetha

swetha (Querist)
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03 March 2016 Thanks a lot for ur time. But it was not acquired by "A" as a settlement rather it was given to him when all the partners distributed assets remaining after priorities as per order of liquidation. My question is as "A" doesn't know his COA, will COA of the firm be the COA of "A" ?If so firm purchased it in 1970 and it further revaluated it by 1990. In that case we have to take revaluated value or as it is before 1981 its MV ON 1981?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 March 2016 It can't be what it costed to the firm. Consider market value as on date of asset distribution.

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