2013 (5) TMI 150

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....d per the Revenue's Ground No. 1, agitates the direction by the ld. CIT(A) in taking the fair market value of the capital asset as on 01.04.1981, being a house property, the acquisition of which by the previous owner being prior to that date, as its cost of acquisition, as against 1/4th of the said value by the Assessing Officer (A.O.). The said issue is the date from which the cost inflation index would apply in computing the long term capital gains under referece. 3.1 We have heard the parties, and perused the material on record. The primary facts of the case, i.e., the manner in which the assessee became the owner of 50% of the house property under reference, which stands sold during the year, is not in doubt or dispute, and stands st....

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....to 01.04.1981, i.e., the cut off date, the assessee may, at its option, substitute the fair market value of the capital asset as on that date for its cost of acquisition. As would be apparent from the afore-stated incidents, which facts are not in dispute, each of the three owners through whom the assessee and her sister have derived their title, i.e., directly or indirectly, acquired the property prior to 01.04.1981. We, therefore, find no infirmity in the treatment of the fair market value of the asset as on 01.04.1981 as the cost of acquisition. The assessee having 50% share therein can, consequently, claim only 50% of the said value (which has been worked by the registered valuer at Rs.16,84,125/-), i.e., at Rs.8,42,063/-, in the comput....