P&H HC applies Sec. 55(3) for computation of cost, in absence of same from previous owner

HC upholds application of Sec. 55(3) for computation of cost of acquisition, in absence of its ascertainment in hands of previous owner; Rejects assessee’s plea for non-taxability of capital gains since cost of acquisition not ascertainable; Approves AO’s action in adopting fair market value as on April 1, 1981 as cost of acquisition u/s 55(3); Even where cost of acquisition cannot be ascertained, Sec. 55(3) statutorily prescribes cost to be equal to the market value on the date of acquisition; Relies on Full Bench (P&H HC) ruling in Raja Malwinder, which distinguishes SC ruling in B.C.Srinivasa Setty : Punjab & Haryana HC

For complete text of Judgement, click here Thakur Dwara-P&H HC