as per section-55, where the capital asset become the property of the assessee on distribution of capital assets by a company on its liquidation and the shareholder has been assessed to income tax under the head "Capital Gains" in respect of that asset u/s-46, the cost of acquisition of the asset will be the fair market value of the asset on the date of distribution.
i agree with the above statement. but in the book of V.K. Singhania "Direct Taxes Law & Practices" page no.-486 para no.-173, "the cost of the previous owner will be the cost of the acqusition" is written and the cost of the asset to company will be the cost of the shareholder.
but it has created a confusion in my mind. is there anybody who can plz clarify this point to me?
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