Capital gains- very important issue for nov-12

Hello Friends,

This is something really important issue relating to Capital Gains for both CA Final and IPCC students appearing for Nov-12 Exams.

CAPITAL GAINS: INDEXATION IN CASE OF TRANSFER BY WAY OF GIFTS:

We know that in case where any capital assets has been acquired by way of gifts or by inherittence then Period of Holding shall be calculated from the date when the previous owner(i.e the transferor) had acquired the asset. Also Cost of Acquisition for transferee is the Cost of Acquisition of the previous owner or the transferer.

And  Indexation in such cases was done by reference to the year in which assesse acqired the asset by way of gifts,etc.  (though some teachers/experts suggested Indexation is to be done considering the year in which previous owner had acquired the asset)  

Now this controversy has been resolved after a recent judgements of Bombay High Court and the Delhi High Court in this regard.