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TMI Blog2014 (8) TMI 111X X X X Extracts X X X X X X X X Extracts X X X X ..... d by applying the deemed fiction, it is not possible to accept the contention of Revenue that the fiction contained in Explanation 1(i)(b) to section 2(42A) of the Act cannot be applied in determining the indexed cost of acquisition under section 48 of the Act – Decided against Revenue. - ITA No. 272/Mum/2013 - - - Dated:- 23-7-2014 - Shri Vijay Pal Rao And Shri D. Karunakara Rao,JJ. For the Petitioner : Shri Ms. Indira Anand For the Respondent : Shri Shrikant Namdeo ORDER Per Vijay Pal Rao, Judicial Member: This appeal by the revenue is directed against the order dated 10/10/2012 of CIT(A) for the assessment year 2009-10. The revenue has raised the following grounds in this appeal:- 1) On the fact and in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by her mother prior to 01/04/1981. The AO denied the benefit of indexation from 01/04/1981 on the ground that the assessee acquired property only in the year 1999 after the death of her mother and, therefore, the assessee is entitled to claim indexation only from the year 1999. On appeal CIT(A) has allowed the claim of the assessee by following the decisions of the Special Bench of this Tribunal in case of Manjula J. Shah (35 SOT 105) which has been upheld by Hon'ble Jurisdictional High Court (2013) 355 ITR 474. 3.1 There is no dispute that the property in question has been acquired by the assessee by way of inheritance, therefore, in view of section 49 of the Income tax Act the cost of acquisition of the asset shall be deemed to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to be computed under section 48 of the Act by treating that the assessee held the capital asset from January 29, 1993, then, naturally in determining the indexed cost of acquisition under section 48 of the Act, the assessee must be treated to have held the asset from January 29, 1993, and, accordingly the cost inflation index for 1992-93 would be applicable in determining the indexed cost of acquisition. 19. If the argument of the Revenue that the deeming fiction contained in Explanation 1(i)(b) to section 2(42A) of the Act cannot be applied in computing the capital gains under section 48 of the Act is accepted, then, the assessee would not be liable for long-term capital gains tax because it is only by applying the deemed fiction contain ..... X X X X Extracts X X X X X X X X Extracts X X X X
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