TaxTMI 
TaxTMI 
2012 (2) TMI 192
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....elating to A.Y. 2002-03. Sole ground raised is as under. "On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in deleting the addition on account of long term capital gains, without appreciating that the assessee's share in the inherited property became determined by virtue of family settlement dated 11-9-2000. Accordingly, the indexed cost of acquisitio....
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....'s claim by following observations: "Thus the Income Tax Act clearly lays down that in the case of acquisition of a property by inheritance, under a will, the cost of acquisition is deemed to be the cost at which the property was acquired by the previous owner. The act makes no distinction on account of the year in which the assessee inherits the property. The assessing officer....
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.... cost of acquisition was the amount spent by the person who threw the asset into the common hotchpot. The Madrash High Court considered the issue of assets received under family settlement in the case of CIT v. Shanti Chandran (2000) 241 ITR 371. In that case it was held that when the assessee received certain shares under a settlement effected by her father, and subsequently sold the shares, it i....
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....he above, Section 55(1)(b)(2)(ii) of the Act provides that where the capital asset became the property of the assessee by any of the modes specified under Section 49(1), of the Act, not only the cost of improvement incurred by the assessee but also the cost of improvement incurred by the previous owner shall be deducted from the total consideration received by the assessee while computing the capi....