Capital Gain

hi.

benifit of indeaxation will be given from date on which previous owner has transeferred assets to transeferee & upto date of sale

jagjeet singh

ca-final student

Agree with jagjeet

The indexation will be applicable from the year in which assessee becomes the new owner...

I think sec 47 (iii) specifies that the period of holding of previous owner will be included in ur case....

So, its the date of previous owner only

Dear Tushar

Please see this case law .....

Mrs.Pushpa Sofat v. ITO [2002] 81 ITD 1 (chd.) (SMC)...

In this case the house was acquired around the year 1972 by the assessee's father and the assessee inherited the property through a will left by her father. The assessee's father expired on feb 17, 1991 and the assessee disposed of property during the assessment year 93-94. The issue arose whether index point 223 pertaining to the acc. year 91-92 ( the year during which the father of the assessee expired) should be adopted or index point of 100 pertaining to april 1 1981 should be adopted. The appellate Truibunal after referring to the provisions of sec 48 and 49 (1) held that the cost of acquisition of the asset has to be deemed to be the cost for which the previous owner had acquired it. The tribunal therefore ultimately held that the point 100 pertaining to April 1 1981 should be taken as the indexed cost of acquisition to work out the CG and as the cost of property by applying the cost inflation index in terms of section 48 (1) (a) was more than the sale consideration it was held that no taxable CG accrued to the assessee...

please see this link too...

https://www.caclubindia.com/forum/plz-answer-69830.asp

Dear Tushar,

You can take the indexation from year of acquisition by previous owner.

Allowed by Appellate Tribunal of Mumbai in case of Manjula Shah....

PFAF

under income tax only judgments of supreme court is considered.

Thanx a ton for the great help

but according to the section pertaining to "cost to the previous owner"

the cost of accquisition will be cost to the previous owner.

but indexation will be from the date when the assessee accquired it as per the will till the date of transfer.

so then i cannot understand how in the cases sited above the benefit of indexation is allowed from the date of previous owner.

i just want to understand more.

thanks

Yup Ragini the act says from the date of transfer which is the date in which the new owner got the asset..But logically i guess it should be given for the period of previous owner also..may be thats why many cases have been decided like tat..

agree with hareesh logically the period of previous owner is also considered but income tax act has made the provision of the index in the year in which assessee becomes owner.