Cost of acquisition rules determine adjusted base cost for assets acquired by amalgamation or transfer when sold as stock-in-trade.

Section 43C sets a special rule for computing cost of acquisition where assets acquired by amalgamation, partition, gift, will or irrevocable trust and later sold as stock-in-trade are attributed the transferor's or amalgamating company's original cost, increased by improvements and expenditures wholly and exclusively incurred in connection with the transfer, including gift-tax paid by the transferor or donor.

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