2009 (6) TMI 6

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....The judgment of the court was delivered by Raman, J - The point that arises for consideration in this appeal is as to what is the date on which the cost of acquisition/fair market value of the appellant's property has been computed. Is it the date of the notification, namely 6.1.1994, on which date the asset was notified as the capital asset or is it to be computed as on 1.4.1981 in terms of Se....

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.... or alterations to the said asset. Therefore, the contention of the assessee that the value of the asset should be as on the date of the notification when it became a capital asset cannot be accepted. In this connection a bench decision of this court reported in Commissioner of Income-Tax v. Smt. M. Subaida Beevi (1986) 160 ITR 557) is directly on the point, wherein it was held that the cost of ac....

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....nder Section 45 is that the property transferred must be a capital asset on the date of transfer and that it is not necessary that it should have been capital asset also on the date of its acquisition by the assessee. Thus this decision directly answers the question raised and concluded. This has been followed in a subsequent decision reported in Karvalves Ltd. v. Commissioner of Income-tax (1992)....