Distribution of capital asset on partition: not regarded as transfer, cost basis and holding period preserved for transferees. Distribution of capital asset on total or partial partition of a Hindu Undivided Family is not regarded as a transfer; the HUF is the transferor and the allotted member the transferee. Cost in the hands of the transferee is the cost to the previous owner (the HUF), and the period of holding for the transferee is the period of holding of the previous owner.