https://www.taxtmi.com/caselaws?id=210721 Bombay HC held that when computing capital gains on transfer of gifted assets, indexed cost of acquisition must be calculated from the year the previous owner first held the asset, not from when the current owner received the gift. The court ruled that deeming fiction in Section 2(42A) applies to determine indexed cost under Section 48, as excluding this would place gifted assets outside capital gains tax purview contrary to legislative intent. Since holding period includes previous owner's tenure for determining long-term capital gains liability, the same principle applies for indexation calculation. Appeal decided in favor of assessee against revenue. en-us Tue, 11 Oct 2011 00:00:00 +0530 Fri, 21 Feb 2025 16:34:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=210721 Bombay HC held that when computing capital gains on transfer of gifted assets, indexed cost of acquisition must be calculated from the year the previous owner first held the asset, not from when the current owner received the gift. The court ruled that deeming fiction in Section 2(42A) applies to determine indexed cost under Section 48, as excluding this would place gifted assets outside capital gains tax purview contrary to legislative intent. Since holding period includes previous owner's tenure for determining long-term capital gains liability, the same principle applies for indexation calculation. Appeal decided in favor of assessee against revenue. Case-Laws Income Tax Tue, 11 Oct 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=210721