In case of inheritance, if assets were acquired by the previous owner before 1st April, 1981, then, cost index should be based on the index of financial year 1981-82

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...