Indexed cost of acquisition of gifted assets

CA Prarthana Jalan 

Indexed cost of acquisition is to be computed with reference to year in which previous owner first held gifted assets.

Hon’ble Delhi ITAT has in the case of DCIT V/s Soni Sonu Mirchandani has held that indexed cost of acquisition  to be computed with reference to the year in which the previous owner first held the gifted assets.

Brief facts of the case are that The assessee had shown long term capital gain in her return of income. AO noticed from the computation of capital gain that all the shares of four companies sold by assessee during the year were neither purchased by her nor allotted to her originally for which she had paid any cost. Instead, she had received all the shares through gift from her two sons Accordingly,the AO concluded that the case of assessee was covered u/s 49(1)(ii) of the I.T. Act which provides that where the capital asset become the property of assessee under the gift, the cost of acquisition of the asset shall be deemed to be the cost for which the previous owner of the property acquired it. Hefurther pointed out that ‘previous owner of the property’ has been explained in relation to any capital asset owned by assessee as the last previous owner of the capital asset who acquired it by a mode of acquisition other

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