cases where the assessee has not been able to establish the cost of acquisition by means of any satisfactory evidence, sale price upto Rs. 50,000 may be taken as capital - Income Tax - 895/CBDT

INSTRUCTION NO. 895/CBDT Dated : October 31, 1975 Attention is invited to Board's Instruction No. 360* (F. No. 207/26/71-ITA-II), dated 18th December, 1971 on the above subject in which, considering the circumstances under which repatriates came to India, it was administratively decided that in cases where the assessee has not been able to establish the cost of acquisition by means of any satisfactory evidence, sale price upto Rs. 50,000 may be taken as capital in computing the capital gains to avoid harassment to the small assessees and the sale price in excess of Rs. 50,000 was to be considered for determining the capital gain. Where, however, the cost of acquisition is established to be more than Rs. 50,000 to the satisfaction of the Income-tax Officer through means of evidence, the cost of acquisition was to be substituted in place of Rs. 50,000. 2. Instances have come to the notice of the Board where Rs. 50,000 was allowed as a deduction from the sale price over and above the cost of the acquisition of the asset. This has never been the intention of the Board. 3. Necessary clarification may please be issued to all the officers working in your charges on the above lines for their information and guidance.