HC on indexation benefit on sale of inherited tenancy rights

Dharmakumar C. Kapadia Vs ACIT (Bombay High Court) (i) In terms of Section 48 of the Act, the income taxable under the head ‘capital gains’ is to be computed after deducting from the full value of consideration received on sale of capital asset, the cost of acquisition and improvement of the asset. Section 49 of the Act provides the manner of computing the cost of capital asset obtained by certain modes of acquisition. In this case, both the Appellant­ Assessee have acquired the capital asset i.e. tenancy rights by inheritance i.e. from their father. Thus, the cost of acquisition...