manisha agarwal (CA) 27 October 2010
As per Supreme Court ,If SIT is aquired by assessee otherwise than by way of purchase (Eg: gift) then COA of SIT shall be FMV on the date whn it it was acquired ie FMV on the date of gift. An Exception to this rule is in Sec 43C.
but in sec 43C its written when a cap asset is transferre as SIT under gift , will, irrevocable trust or on partition of huf then COA is aggregate of folwg:
a)COA of said asset to the transferor
b) Expenditure on improvement incurred by transferor n tranferee and
c) exp incurred wholly n exclusively in connection of transfer by transferor such as gift tax , probate fees,etc
Now i 'm confused between Sc judgement and sec 43 c.. wat will b the COA of gifted SIT??