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\u00a0 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.\u00a0 Accordingly\u00a0 denied benefit of cost inflation index. CIT(A)\u00a0 allowed the\u00a0 claim of the assessee. On appeal the Tribunal held that\u00a0 second proviso to section 48, which grants indexation benefit, does not distinguish between assets held in India and in foreign countries. Therefore the\u00a0 assessee is\u00a0 entitled to deduct indexed cost of shares of foreign company while computing long term capital gain. (AY. 2016-17)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 48 : Capital gains-Mode of Computation-Cost inflation index-Foreign asset is held and sold outside India-Indexation-Shares held in foreign countries-Resident company-Second proviso to section 48, which grants indexation benefit, does not distinguish between assets held in India and held in foreign countries-Eligible for Indexation.[S. 45] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-55080","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-eko","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/55080","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=55080"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/55080\/revisions"}],"predecessor-version":[{"id":55081,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/55080\/revisions\/55081"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=55080"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=55080"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=55080"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}