Capital Gains

In case of gifted Assets, indexation benefit is available from the year of acquisition of the previous owner

Dec 30, 2009 Income Tax Case Laws

This article summarizes a recent ruling of the Special Bench (SB) of the Mumbai Income Tax Appellate Tribunal (ITAT) [ITA No. 7315/Mum/2007] in the case of DCIT vs. Manjula Shah (Taxpayer) which held that, in the case of gifted capital asset, indexation benefit is available to a donee from the year of its acquisition by the previous owner. The SB adopted a purposive construction of the definition of ‘Indexed Cost of Acquisition’ (ICOA) by looking at the scheme of the Indian Tax Law (ITL), which seeks to grant the benefit of cost and holding period of the previous owner to the donee.

Link:

https://www.taxguru.in/income-tax-case-laws/in-case-of-gifted-assets-indexation-benefit-is-available-from-the-year-of-acquisition-of-the-previous-owner.html

Can anyone help in this regard ?

Whether i can take the Indexation benefit from the date of acquisition of Previous owner or not, by quoting the above Case Law ?