Assessee, a resident company, sold shares of its foreign subsidiary company and computed long-term capital gain by deducting indexed cost of acquisition. Assessing Officer held  that cost of inflation index was determined on basis of inflation taking place in India and, hence, assessee could not avail benefit of cost of inflation index in respect of its foreign assets held and sold outside India.  Accordingly  denied benefit of cost inflation index. CIT(A)  allowed the  claim of the assessee. On appeal the Tribunal held that  second proviso to section 48, which grants indexation benefit, does not distinguish between assets held in India and in foreign countries. Therefore the  assessee is  entitled to deduct indexed cost of shares of foreign company while computing long term capital gain. (AY. 2016-17)