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TMI Blog2014 (9) TMI 1093X X X X Extracts X X X X X X X X Extracts X X X X ..... H COURT) it is quite settled that while computing the capital gain arising out of transfer of capital asset acquired by the assessee from the previous owner, the index cost of 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 became the owner of the asset. Here in this case, it is undisputed fact that the tenancy right was acquired by his father much before 1st April 1981, and the assessee became the owner on distribution of assets on dissolution of the firm in view of section 49(1)(iii)(b), therefore, the cost of acquisition has rightly been held to be adopted from 1st April 1981. Thus, the order of the learned Commissioner (Appeals) is affirmed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as substituted by the market value as on 1st April 1981, based on valuer s report. The Assessing Officer held that no cost has been incurred by the assessee in the acquisition of tenancy rights and, therefore, the benefit of cost of inflation index cannot be given. Accordingly, he rejected the inflated cost of index at ₹ 29,42,730. 3. Before the learned Commissioner (Appeals), it was submitted that the assessee had sold the tenancy rights of the office premise for sum of ₹ 50,28,600. Since the tenancy rights was acquired by his father prior to 1st April 1981, therefore, the fair market value as on 1st April 1981, of ₹ 5,61,000, was adopted. It was further submitted that in the said office premise, business of partnersh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... represented the case in person. 5. After considering the rival submissions and also the finding given in the impugned order, we find that there is no infirmity in the finding and the conclusion drawn by the learned Commissioner (Appeals) as now in wake of decision of the Hon'ble Jurisdictional High Court in Manjula J. Shah (supra), it is quite settled that while computing the capital gain arising out of transfer of capital asset acquired by the assessee from the previous owner, the index cost of 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 became the owner of the asset. Here in this case, it is undisputed fact that the tenancy right w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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