Hi,
A property has been transfered by way of will, from which year the benefit of indexatiion can be given
whether of the year in which asset was originally acquired by previous owner or of the year in which asset is transfered under will.
11 Replies
Jagjeet Singh
(ca-final)
(174 Points)
Replied 20 February 2010
hi.
benifit of indeaxation will be given from date on which previous owner has transeferred assets to transeferee & upto date of sale
jagjeet singh
ca-final student
CA Manish K Dhoot
(CA, B. Com, NCFM, CPCM)
(5015 Points)
Replied 20 February 2010
Agree with jagjeet
The indexation will be applicable from the year in which assessee becomes the new owner...
CA Dhiraj Ramchandani
(CA, M. com)
(10823 Points)
Replied 20 February 2010
I think sec 47 (iii) specifies that the period of holding of previous owner will be included in ur case....
So, its the date of previous owner only
C.Balaji
(Learner)
(1867 Points)
Replied 20 February 2010
Dear Tushar
Please see this case law .....
Mrs.Pushpa Sofat v. ITO [2002] 81 ITD 1 (chd.) (SMC)...
In this case the house was acquired around the year 1972 by the assessee's father and the assessee inherited the property through a will left by her father. The assessee's father expired on feb 17, 1991 and the assessee disposed of property during the assessment year 93-94. The issue arose whether index point 223 pertaining to the acc. year 91-92 ( the year during which the father of the assessee expired) should be adopted or index point of 100 pertaining to april 1 1981 should be adopted. The appellate Truibunal after referring to the provisions of sec 48 and 49 (1) held that the cost of acquisition of the asset has to be deemed to be the cost for which the previous owner had acquired it. The tribunal therefore ultimately held that the point 100 pertaining to April 1 1981 should be taken as the indexed cost of acquisition to work out the CG and as the cost of property by applying the cost inflation index in terms of section 48 (1) (a) was more than the sale consideration it was held that no taxable CG accrued to the assessee...
Max Payne
(employed)
(2574 Points)
Replied 20 February 2010
Dear Tushar,
You can take the indexation from year of acquisition by previous owner.
Allowed by Appellate Tribunal of Mumbai in case of Manjula Shah....
PFAF
Attached File : 43 manjula shah indexed cost gift.pdf downloaded: 253 times
CA Manish K Dhoot
(CA, B. Com, NCFM, CPCM)
(5015 Points)
Replied 20 February 2010
under income tax only judgments of supreme court is considered.
Seetha
(B.Com, CA)
(278 Points)
Replied 20 February 2010
but according to the section pertaining to "cost to the previous owner"
the cost of accquisition will be cost to the previous owner.
but indexation will be from the date when the assessee accquired it as per the will till the date of transfer.
so then i cannot understand how in the cases sited above the benefit of indexation is allowed from the date of previous owner.
i just want to understand more.
thanks
Hareesh H Sharma
(Cleared IPCC..now article)
(894 Points)
Replied 20 February 2010
Yup Ragini the act says from the date of transfer which is the date in which the new owner got the asset..But logically i guess it should be given for the period of previous owner also..may be thats why many cases have been decided like tat..
CA Manish K Dhoot
(CA, B. Com, NCFM, CPCM)
(5015 Points)
Replied 20 February 2010
agree with hareesh logically the period of previous owner is also considered but income tax act has made the provision of the index in the year in which assessee becomes owner.
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