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Capital Gain

Tax planning 526 views 3 replies

C.Balaji

Learner

1867 Points Joined October 2008

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???

Replies (3)

Amir

Learner

4016 Points Joined December 2009

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 Joined October 2008

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.)....