Key issues: 1) The treatment of long-term capital gain on ...

Jewelry inheritance: Long-term gains treated as short-term, wife's 50% exemption disallowed incorrectly.

Case Laws     Income Tax

September 14, 2024

Key issues: 1) The treatment of long-term capital gain on inherited/gifted jewelry as short-term capital gain, where the assessee's claim of the jewelry being 30-40 years old was accepted based on valuation report, wife's statement, and jeweler's statement, allowing benefit u/s 54. 2) The disallowance of exemption u/s 54 for 50% share of the wife in the new house property was incorrect, as the entire investment was made by the assessee, and the full value was reflected in Form 26AS. 3) Based on the above findings, the assessee's appeal was allowed by the Appellate Tribunal.

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