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TMI Blog2014 (5) TMI 430X X X X Extracts X X X X X X X X Extracts X X X X ..... antiate her claim of fair market value as on 01.04.1981 - The AO has completely ignored this fact holding that the cost of acquisition has to be taken at nil, which is not a correct proposition of law - the transaction involves capital gains tax liability, it has to be computed as per the provisions of law – thus, the matter is required to be remitted back to the AO for determination of the cost of acquisition of the property as on 01.04.1981 by referring the matter to the valuation cell or in alternative accept the valuation report of the assessee and re-determine the Long term capital gains after giving a reasonable and sufficient opportunity of being heard to the assessee – Decided in favour of Assessee. - ITA No. 8280/Mum/2011, ITA No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t chargeable to tax. 2.a. Without prejudice to Ground No.1, the learned CIT(A) erred in not granting the Appellant, the proportionate Cost of Acquisition as on 01-04-1981, while computing the Capital Gains on moneys received by the Appellant as inheritance. b. The learned CIT(A) failed to take into consideration that the Appellant herein had an inherent right in her grand father s estate and thus making the Appellant an owner thereof after his death and therefore while computing long term capital gain proportionate cost of acquisition should have been allowed. 3. Briefly stated, the facts of the case are that during the course of scrutiny assessment proceedings the AO noticed that the assessee has invested Rs.30 lacs in Birla Sun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs i.e. two daughters, who are in appeal before us. Subsequently, Shri Natwarlal Shah died and as per his will, he bequeathed 50% share to his son Shri Sukumar Shah. As per the will of Shri Natwarlal Shah his son Shri Sukumar Shah can decide if anything is to be given to his daughters children. It was explained to the CIT(A) that in view of this discretion, Shri Sukumar Shah has given a sum of Rs.85 lacs to the assessee out of natural love and affection, which was the source of investment in mutual fund. In the alternative, it was also pleaded before the CIT(A) that if it is considered as a case of surrender of right in property, then the assessee is entitled for computation of capital gains as per the provisions of law. In support the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ven to my daughter s children. The counsel further drew our attention to the confirmation of Shri Sukumar Shah by which Shri Sukumar Shah confirmed of having paid Rs.85 lacs as per the bequest of Late Shri Natwarlal Shah. It is the say of the counsel that what has been received by the assessee is nothing but under will of Late Shri Natwarlal Shah. In alternative, the counsel reiterated the claim of computation of capital gains as per the provisions of law. The DR strongly relied upon the findings of the AO. 5. We have carefully perused the orders of the authorities below with the relevant material evidences brought on record before us. The AO has taken a firm stand that what the assessee has received is towards surrender of her right ..... X X X X Extracts X X X X X X X X Extracts X X X X
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