Rajani Prakash Kashid vs. Income Tax Officer

Parties Involved

Facts Summary

The assessee, Rajani Prakash Kashid, sold an immovable property on 20.05.2010 for Rs.1,41,00,000/-. The assessee's share in the sale was Rs.70,50,000/-. The property was an Inam land received by the assessee's ancestors and had no cost of acquisition. The assessee argued that since the land had no cost of acquisition, no capital gain tax liability should arise. The Assessing Officer and the Commissioner of Income Tax (Appeals) upheld the capital gain tax liability, which the assessee appealed against.…

Legal Issues

• 1. Whether the machinery provision for computing capital gain fails in the absence of cost of acquisition incurred in obtaining land in Inam?
• 2. Whether the indexed cost of acquisition should be allowed while calculating long term capital gain?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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