21 February 2011
Assessee’s mother purchased the house property in April 1974. After her death on January 2008 her two sons and a daughter made the partition deed on March 2008 in which the building was valued at Rs.15 lakhs and the assessee paid Rs.5 lakhs each to his brother and sister in cash and take the entire house property in his name. Assessee sold the house property for Rs.30 lakhs on August 2010 and purchased the house property on January 2011 for Rs. 15 lakhs. The issues are 1) Whether it is long term capital gains or short term capital gains 2) If it is a long term capital gains, can the assessee claim the amount paid to his brother and sister Rs.10 lakhs as cost of acquisition and claim the house property purchases u/s 54.
CAclubindia
