Dear Friends...
Mr.X acquired shares in 1977 which were converted into Capital asset on 1.7.88 at original purchase price of Rs.17/share.... Mr.X sold the shares on 1.2.2010....What will be the Cost of Acquisiton???
C.Balaji (Learner) (1867 Points)
13 February 2010Dear Friends...
Mr.X acquired shares in 1977 which were converted into Capital asset on 1.7.88 at original purchase price of Rs.17/share.... Mr.X sold the shares on 1.2.2010....What will be the Cost of Acquisiton???
Amir
(Learner)
(4016 Points)
Replied 13 February 2010
Dear BALAJI,
I would simply follow what G.K. bhai does -
Simply - FMV as on 01.04.1981 cannot be taken, since it was converted in 1988, Further Cost shall be the orignal Price only...
Now, I am sure u will say that FMV can be taken..........:))
C.Balaji
(Learner)
(1867 Points)
Replied 13 February 2010
But Mr.Amir bhai i have a case law in which the Tribunal allowed 1.4.81 Market value ...
Please see this...
Kalyani Exports & Investments (P.) Ltd. / Jannhavi Investments (P.) Ltd. / Rajgad Trading (P.) Ltd. Vs. Deputy Commissioner of Income-tax (2001) - 78 - ITD - 95 (Pune) (T.M.)....
C.Balaji
(Learner)
(1867 Points)
Replied 13 February 2010
Mr.Amir bhai....
I should say that your views are somewhat like the Tribunals....
You have a really good future ahead....from bottom of my heart....
CAclubindia
