Cost of acquisition in case of court's decree

This query is : Resolved

sakshi (Querist)
Follow

04 December 2013 If a son files a suit against father for acquiring his share in the property and the court's decision goes in his favour....

then what will be the cost of acquisition in the hands of son...either previous owner's cost or Fair Market Value of the property as on the date of court's decision.

Acquired by father in 2001
Court's decision held in 2011.

Manish Bhandari

Manish Bhandari (Expert)
Follow

04 December 2013 Cost to previous owner is considered. Court is not the owner but rather who should be owners it can decide. In your case the previous owner is father so 2001 will prevail as cost to the son.

sakshi

sakshi (Querist)
Follow

04 December 2013 Thanks for the remarks Sir..

But section 49(1) specifies gift,inheritance & succession will include previous owner's cost.

and this case does not fall under any of the above definition of gift, inheritance or succession.

would it not be a normal transfer as under section 2(47)?

Upgrade to CAclubindia Pro. Subscribe Now!

Manish Bhandari

Manish Bhandari (Expert)
Follow

04 December 2013 what is transfer
sale, exchange, relinquishment or extinguishment. In the above case it is niether of any relations to transfer.
As per law son has a share in property of his father or forefathers. He has just acquired the same. It is as good as inheritance. Court even does not recognise Family arrangement amoung members for interest in property as transfer.
So i would continue withmy previous opinion.Your query is definately thought provoking keep it up.

Message likes : 1 times

sakshi

sakshi (Querist)
Follow

05 December 2013 Thanks a lot Sir..