2008 (12) TMI 367

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ly owned by a firm in which the appellant was a partner. The firm was dissolved on April 15, 2001, and in the dissolution deed the entire assets including the hospital building and land were taken over by the assessee. We are told that the firm was subjected to levy of tax on capital gains only on the land sold and not for the hospital building. However there is no need for us to consider the liability of the firm for capital gains on the transfer of the hospital building and land to the assessee. The assessee sold the hospital building and the land for Rs. 40,12,000 after 3 days of acquiring the same for Rs. 14,82,222. According to the assessee/appellant, even though the asset was taken over by him only on April 15, 2001, along with all ot....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ds as follows : "49. Cost with reference to certain modes of acquisition.-(1) Where the capital asset became the property of the assessee-. . . (iii) (a) by succession, inheritance or devolution, or (b) on any distribution of assets on the dissolution of a firm, body of individuals, or other association of persons, where such dissolution had taken place at any time before the 1^st day of April, 1987 . . .  the cost of acquisition of the asset shall be deemed to be the cost for which the previous owner of the property acquired it, as increased by the cost of any improvement of the assets incurred or borne by the previous owner or the assessee, as the case may be." 4. By virtue of the operation of section 2(42A) read with sec....