https://www.taxtmi.com/caselaws?id=19723 The court held that an assessee can opt to substitute the fair market value as the cost of acquisition for computing capital gains under the Income-tax Act, 1961. It ruled that Section 50(2) does not affect the option granted under Section 55(2), emphasizing the protection against illusory capital gains. The court found Section 50(2) arbitrary and potentially violative of Article 14 of the Constitution due to its distinctions lacking a rational basis. Consequently, the court quashed the assessment order and notice of demand, restraining tax recovery and rendering the appeal before the Tribunal moot, with no costs awarded. en-us Wed, 27 Apr 1994 00:00:00 +0530 Mon, 09 Nov 2009 12:30:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=19723 The court held that an assessee can opt to substitute the fair market value as the cost of acquisition for computing capital gains under the Income-tax Act, 1961. It ruled that Section 50(2) does not affect the option granted under Section 55(2), emphasizing the protection against illusory capital gains. The court found Section 50(2) arbitrary and potentially violative of Article 14 of the Constitution due to its distinctions lacking a rational basis. Consequently, the court quashed the assessment order and notice of demand, restraining tax recovery and rendering the appeal before the Tribunal moot, with no costs awarded. Case-Laws Income Tax Wed, 27 Apr 1994 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=19723