Recent important decision of the Delhi High Court

In the recent decision of the Delhi High Court in the case of  ARUN SHUNGLOO TRUST v. CIT  the High Court, after analysing the facts of the case and position in law, laid down an important legal proposition that while computing capital gains arising on transfer of a capital asset acquired by assessee in terms of section 49(1) of the Act, then, ‘indexed cost of acquisition’ has to be computed with reference to year in which previous owner first held the said asset, and not from the year in which assessee became owner of that asset.

Note: Recently the Bombay High Court in the case of Commissioner of Income-tax v. Manjula J. Shah has also held likewise.