Income Tax – Capital Gains
Asset Acquired From Previous owner Base Year for Indexation Purposes
R. S. Kohil
Base year for indexation should be determined with reference to the year in which asset was first held by previous owner – Recent Judgment of Mumbai High Court.
In CIT v. Manjula J.Shah (2011) 42 (1) ITCL 405 (Bom-HC).
The ITAT was justified in holding that while computing the capital gains arising on transfer of capital asset acquired by the assesses under a gift the indexed cost the acquisition has to be computed with reference to the year in which the previous owner first held the asset and not the year in which the assessee, being the subsequent holder became the owner of the asset.
Source:
The tax Publisher, Volume 122 Issue No.6 12th Dec 2011
