26 December 2009
there is a case law in which decision was in favor of assessee. capital gain is exempt from tax if ancient property of king or ex-ruler sold.
please, if possible find case law and give me proper reply.
28 December 2009
You have one case law in your favour i. e. CIT v/s H. H. Maharaja Sahib Shri Lokendra Singhji (1986) 162 ITR 93 (MP) high court where it was held as Tax on capital gains arises only in respect of those capital assets involving cost of acquisition—Tax not leviable where the element of cost is inconceivable—Jagir property gifted to the assessee's ancestor—There was no cost of acquisition in the ancestor's hands—Sale of a part of the Jagir property by the assessee— No capital gain accrued—Where cost of acquisition is not ascertainable, fair market price cannot be taken into consideration
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