01 February 2016
hello,
in case of property inherited CII of which year should be used, the year in which property was inherited or the year in which property was purchased by previous owner..??
and second question is
in case of compulsory acquisition which year CII should be used ,the year in which first payment is received or the year in which it was acquired.??
01 February 2016
The issue involved is squarely covered by the decision of this Court in the case of B.N. Vyas v. CIT [1986] 159 ITR 141 and the decision of the Bombay High Court in the case of CIT Vs. Manjula J. Shah.
In the aforesaid decisions, it is held that for the purpose of computation of long term capital gain, the indexed 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.
In case of compulsory acquisition CII of year in which possession transfered(year of acuisition) to be considered.
CAclubindia
