Base year for calculation of index cost of acquisition of the shares in terms of Explanation (iii) to Section 48 of the Act, acquired by the assessee by way of inheritance (one of the modes specified in Section 49(1) of the Act) should be taken as financial year 1981-82 when such shares were acquired by the previous owner prior to 1st April, 1981. As decided by bobbay high court also in the case of CIT vs. Manjula J. Shah.
INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH
ITA No. 2976/Del/2011, Assessment Year: 2006- 07
Deputy Director of Income Tax
Vs.
Ms. Banita Sawhney
ORDER
PER I.P. BANSAL, JUDICIAL MEMBER
This is an appeal filed by the revenue. It is directed against the order passed by the CIT (A) dated 3rd February, 2011 for Assessment Year 2006-07. The grounds of appeal read as under:-
1. On the facts and circumstances of the case, learned CIT (A) has erred in holding that base year for calculating indexed cost of acquisition would be 1981-82.
2. On the facts and circumstances of the case, learned CIT (A) has erred in not appreciating that first year in which asset was held the assessee was the first year in which it was inherited by the assessee.
3. The appellant prays for leave to add, amend, modify or alter any grounds of appeal at the time or before the hearing of appeal.”
2. The assessee had inherited property on the death of her father on 5th December, 2001. The details of the property which comprise shares has been tabulated in the order of the CIT (A) and, for the sake of convenience, the same is reproduced below:-
