How To Compute ‘Indexed Cost of Acquisition’ For Gifted Assets

Arun Shungloo Trust Vs. CIT (Delhi High Court) There is no reason and justification to hold that clause (iii) of the Explanation intents to reduce or restrict the “indexed cost of acquisition’ to the period during which the assessee has held the property and not the period during which the property was held by the previous owner. The interpretation relied by the assessee is reasonable and in consonance with the object and purpose behind Sections 48 and 49 of the Act. The expression “held by the assessee” used in Explanation (iii) to Section 48 has to be understood in the context an...