COMMISSIONER OF INCOME TAX Vs. RAJESH VITTHALBHAI PATEL

JUDGEMENT

(1.) Revenue is in appeal against the judgment of the Income Tax Appellate Tribunal dated 1.6.2012 raising following questions for our consideration:

(2.) Drawing our attention to the provisions contained in sections 48 and 49 of the Act, learned counsel Shri Parikh vehemently contended that the Assessing Officer had correctly taken the indexed cost of acquisition with reference to the date of acquisition of property by the assessee himself and not by the previous owner. Putting much stress on Explanation (iii) to section 48, he stated that the reference to first year in which the asset was held by the assessee must be taken to be the year 1995, the date on which the property was acquired by the assessee through gift.

(3.) We are however, of the opinion that CIT(Appeals) as well as Tribunal committed no error. We may recall that in the present case, since the assessee had acquired the property through gift, in normal understanding of law, there would be no cost of acquisition attached to such property. Section 49 of the Act, however, makes a deeming provision for computing the cost of acquisition in such cases. Relevant portion of section 49 reads as under: