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TMI Blog2013 (5) TMI 102X X X X Extracts X X X X X X X X Extracts X X X X ..... since she was possessing/owning the said property only from that year, the indexation was to be allowed only from the financial year 2001-02. Held that - Respectfully following the decision of Bombay High Court DCIT vs. Manjula J. Shah reported in [2011 (10) TMI 406] (Mumbai) we uphold the impugned order of the learned CIT(Appeals) giving relief to the assessee on this issue and dismiss the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held the property without appreciating the fact that the assessee became the owner of property in F.Y. 2001-02 i.e. after the death of her father. 2. On the facts and in the circumstances of the case and in law, the learned CIT(A) has failed to appreciate the fact that the Explanation (iii) to section 48 clearly states that the cost Inflation Index shall be adopted from the first year in which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9-07-2008, the assessee declared the long term capital gain arising from the said sale and while working out the same, deduction was claimed by the assessee on account of indexed cost of acquisition by taking the base valuation of the financial year 1981-82. According to the AO, the assessee had received the property after the death of her father in the financial year 2001-02 and since she was pos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of a capital asset which had become property of the assessee under gift, the first year in which the capital asset was held by the assessee has to be determined to work out the indexed cost of acquisition as envisaged in Explanation (iii) to section 48 after taking into account the period for which the said capital asset was held by the previous owner. In that view of the matter, we hold that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case of Manjula J. Shah (supra) has been upheld by the Hon'ble Bombay High Court holding that while computing capital gain arising on transfer of capital asset acquired by the assessee under a Gift or Will, indexed cost of acquisition has to be computed with reference to the year in which previous owner first held the asset and not the year in which the assessee became owner of the asset. Resp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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