TaxTMI 
TaxTMI 
2014 (10) TMI 888
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....The major components of his income during the year under consideration are from long term capital gains. The long term capital gains accrue to him on transfer of his shares of property comprising land and building situated at Egmore, Chennai. The property was sold jointly along with three other persons being siblings of the assessee. The above property came to the assessee and others after demise of his mother Smt. Nargis Begum Shooshthary, who passed away intestate in 15.07.2005. The property was sold during the previous year 2007-08 on 26.10.2007 for a consideration of Rs. 16,11,00,000/-. The full value of the consideration received by the assessee was Rs. 4,02,75,000/-. 3. The assessee computed the capital gains amounting to Rs. 2,53,93....
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....case in Special Bench (318) ITR (AT) 417 (Mumbai)(SB). However, the Assessing Officer has not accepted the explanation of the assessee and the Assessing Officer has calculated the indexation cost of acquisition taking into consideration of financial year 2005-06. 4. The assessee carried the matter in appeal before the ld. CIT(Appeals). It was submitted before the ld. CIT(Appeals) that for the purpose of calculation of cost of indexation, financial year 1981-82 has to be taken into consideration and for that, the assessee has relied in the case of CIT v. Manjula J. Shah [2013] 355 ITR 474 (Bom). The ld. CIT(Appeals), after considering the submissions of the assessee, by following the Mumbai Special Bench decision in the case of DCIT v. Man....
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....nsfer of a capital asset which had become property of the assessee under gift, the first year in which the capital asset was held by the assessee has to be determined to work out the indexed cost of acquisition as envisaged in Explanation (iii) to section 48 after taking into account the period for which the said capital asset was held by the previous owner. In that view of the matter, we hold that the indexed cost of acquisition of such capital asset has to be computed with reference to the year in which the previous owner first held the asset." 9. The very same issue has also been considered by the Hon'ble Bombay High Court in the case of CIT v. Manjula J. Shah [2013] 355 ITR 474 (Bom) and held as under: "The indexed cost of acquisitio....