S.45: Capital gains- Adverse possession-No cost of acquisition –Not liable to capital gain tax.
The Income tax Appellate Tribunal held that when an assessee get the property by adverse possession there is no cost of acquisition. The consideration is not liable to capital gain tax. Revenue challenged the said order before High Court. High court dismissed the appeal stating that no question of law arises.
ITANO 1110 OF 2009 and 1153 of 2009 dt 11-8-2009
1 comment:
Just to clarify is the capital gains at the time of acquisition in an illegal manner or at the time of sale of such illegally acquired property.
Looking at section 45 the acquisition of property by adverse possession does not seem to be covered. Please help on this
Post a Comment