Sale of Gold - URGENT

Hello!

Can anyone contribute some suggessions please!

Hi,

Market Rate or FMV on the date of Gift can not be taken as "Cost of Acquisition" since no provision permits that.

Sec 55(3) - Where the cost for which the previous owner acquired the property cannot be ascertained, the cost of acquisition to the previous owner means the fair market value on the date on which the capital asset became the property of the previous owner.

Now this date may very well coincide with the date of gift otherwise the relevant date is the date on which trhe asset became the property of the previous owner.

Hello Amir, Glad to hear from you!

By the way you seem to be quiet busy these days!

Yes Amir, I am acquainted with the provision of Sec. 55(3).

Actually, the Gift date is 7 year old, and you know in marriage cost of gifts cannot be ascertained & after 7 years we cannot ask the person who gifted as to at what cost did he buy & when did he buy the ornament or was it gifted to him be someone else?

I don't mind taking a lower of higher value of COA

Though the gains from said sale are exempt here, Actually I am concerned as to what cost of acquisition should be shown in books, which will be acceptable to the A.O?

And Yes, the gains might get taxable if the Assesse sales the house within 3 years. (And think it in Other way also if the 54F would not have been availed)

Thus I wan't an opinion as to what COA will be fair in this case.

What can you suggest in this case?

Hi!

Hi......!

I know that your question is still pending but then what to do? I do not have the answer.......

Ok let me try to explain to you in a different way - In order to calculate interest, one needs 3 things = Principal Amount, Rate of Interest & Period (for which interest is to be calculated) 

Now, how can interest be calculated in the absence of anyone or more of the above items?

Similar is the case with your query - for computing capital gains, we need "Sale consideration" & "Cost Price" - So, capital gains cannot be computed if any of the information is missing out of the two.

My final call on this issue will be -

A) Taxability can not be avoided by saying that "cost" is not available.

B) Does Law permits any other "cost" to be taken in such case? - "No"

C) What should be done? (assuming this case is picked up for scrutiny) - Now this thing will get resolved on a cost price, on which both assesee and AO are satisfied otherwise - AO will do the assessment based on his own estimation, which assesee will challenge in appeal.

D) Coming back to ur reply - FMV on the "date of gift" - Though law do not permits but  it is the most suitable cost to take in this case and I hope most of the AO's will agree & accept this as Cost of Acquisition

Thanks Amir for your reply!