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TMI Blog2018 (1) TMI 1307X X X X Extracts X X X X X X X X Extracts X X X X ..... red by the father of the assessee in the year 1945. In view of the provisions of subsection (1) of section 49 of the Act read with the Explanation thereto, since the capital asset has become the property of the assessee under a will, the cost of acquisition is deemed to be the cost for which the previous owner, namely the assessee’s father, acquired it. The record of the case shows that the property was acquired by the father of the assessee in the year 1945. Therefore, in view of the provisions of clause (iii) to the Explanation to section 48 of the Act, the indexed cost of acquisition is required to be computed by considering the cost of acquisition for the year beginning on the 1st day of April, 1981. In the light of the above disc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome on 30.07.2006 declaring long term capital gain of ₹ 1,03,15,530/after taking cost of acquisition for the year 1981. The Assessing Officer was of the view that under clause (iii) of the Explanation to section 48 of the Act, the cost of indexation has to be taken from March 2004 only and not for the year 1981, since the asset was acquired on the former date. He, accordingly, framed the reassessment on 31.10.2012 and recomputed the cost of acquisition at ₹ 92,50,206/and made the consequential addition. 4. The assessee went in appeal before the Commissioner (Appeals), who partly allowed the appeal by holding that the assessee was justified in stating that the fair market value of the property acquired by virtue of a will sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty in the year 2004, the indexed cost of acquisition has to be considered by considering the cost of acquisition for that year. 8. To better appreciate the controversy in issue, it may be necessary to refer to certain statutory provisions. Section 49 of the Act provides for Cost with reference to certain modes of acquisition and to the extent the same is relevant for the present purpose, reads thus: 49. Cost with reference to certain modes of acquisition .- ( 1) Where the capital asset became the property of the assessee- ( i) on any distribution of assets on the total or partial partition of a Hindu undivided family; ( ii) under a gift or will; ( iii)(a) by succession, inheritance or devolution, or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee under a gift or a will; by succession, inheritance or devolution; the cost of acquisition of the asset shall be deemed to be the cost for which the previous owner of the property acquired it, as increased by the cost of any improvement of the assets incurred or borne by the previous owner or the assessee, as the case may be. The expression previous owner of the property in relation to any capital asset owned by the assessee has been defined in the Explanation to subsection (1) of section 49 of the Act to mean the last previous owner of the capital asset who acquired it by a mode of acquisition other than that referred to in clause (i) or clause (ii) or clause (iii) or clause (iv) of the subsection (1). 10. Examining the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uired it. The record of the case shows that the property was acquired by the father of the assessee in the year 1945. Therefore, in view of the provisions of clause (iii) to the Explanation to section 48 of the Act, the indexed cost of acquisition is required to be computed by considering the cost of acquisition for the year beginning on the 1st day of April, 1981. 12. In the light of the above discussion, it is amply clear that the view adopted by the Tribunal is in consonance with the above statutory provisions. Under the circumstances, it cannot be said that the impugned order passed by the Tribunal suffers from any infirmity giving rise any question of law, much less, a substantial question of law as proposed or otherwise. The appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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