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TMI Blog1983 (11) TMI 49X X X X Extracts X X X X X X X X Extracts X X X X ..... of acquisition in the hands of the assessee ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the cost of acquisition of property No. G-16, New Delhi, South Extension, in the hands of the assessee-Hindu undivided family was nil ? " The assessee, M/s. Deena Nath Nanda Sons, is an HUF. The year of assessment in question is 1970-71. The accounting year ended on December 31, 1969. A plot of land, bearing No. 16, Block G, New Delhi, South Extension Scheme, Part I, was purchased by Deena Nath Nanda and his wife, Smt. Rattan Devi Nanda. A two and a half storeyed building thereafter was constructed thereon and the total cost came to Rs. 76,748. Two affidavits in similar terms dated March 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lusion that the cost of acquisition of the property in the hands of the assessee was nil. The appeal of the Revenue was allowed partly and the appeal of the assessee was rejected. A similar question came up for consideration before a Division Bench of this court to which one of us (S. S. Chadha J.) was a party. It is reported as Addl. ITO v. Madan Lal Jain and Sons [1983] .140 ITR 200 (Delhi). The provisions of ss. 45 and 48 of the Act were construed. It was held that a profit or gain can accrue only when there is a cost of acquisition and not otherwise. The cost of acquisition contemplated by s. 48 of the Act can be cost of acquisition of the capital asset in someone's hands and not necessarily in the hands of the assessee, as the sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing from the sale of shares would be the market value of the shares, as on the date on which it acquired them, namely, the date on which they were thrown into the common hotchpot by the karta. The Gujarat High Court in our opinion, with due respect to the learned judges, have gone a little too far. But it is, however, not necessary to express any considered opinion in this case. The cost of acquisition within the meaning of s. 48 would be the cost of acquisition to Shri Deena Nath Nanda and his wife, Smt. Rattan Devi Nanda, which has been calculated by the ITO at Rs. 76,748. Accordingly, we answer the two questions in favour of the assessee and against the Department. There will be no order as to costs. - - TaxTMI - TMITax - Income Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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