Indexed cost of gifted assets has to be determined with reference to previous owner – Bombay HC

CIT vs. Manjula J. Shah (Bombay High Court)- In the present case, the capital asset in question (Flat No. 1202-A) was originally acquired by the previous owner (daughter) on 29/1/1993 and the same was acquired by the assessee under a gift deed dated 2/1/2003 without incurring any cost. The assessee sold the said capital asset on 30/6/2003 for Rs.1,10,00,000/-. Since the assessee held the capital asset for less than thirty six months (2/1/2003 to 30/6/2003) in the ordinary course, as per Section 2(42A) of the Act the assessee would have held the asset as a short term capital asset and according...