India - Income Tax Act 2010 - Saarc

1.347 CH. IV - COMPUTATION OF INCOME FROM CAPITAL GAINS S. 55A(b) the conversion of any shares of the company into stock,(c) the re-conversion of any stock of the company into shares,(d) the sub-division of any of the shares of the company intoshares of smaller amount, or(e) the conversion of one kind of shares of the company intoanother kind,means the cost of acquisition of the asset calculated with referenceto the cost of acquisition of the shares or stock from whichsuch asset is derived.](3) Where the cost for which the previous owner acquired the property cannotbe ascertained, the cost of acquisition to the previous owner means the fairmarket value on the date on which the capital asset became the property of theprevious owner.21[Reference to Valuation Officer.2255A. With a view to ascertaining the fair market value of a capital asset forthe purposes of this Chapter 23 , the 24 [Assessing] Officer may refer thevaluation of capital asset to a Valuation Officer—(a) in a case where the value of the asset as claimed by the assessee is inaccordance with the estimate made by a registered valuer, if the24[Assessing] Officer is of opinion that the value so claimed is less thanits fair market value ;(b) in any other case, if the 24 [Assessing] Officer is of opinion—(i) that the fair market value of the asset exceeds the value of theasset as claimed by the assessee by more than such percentage25 of the value of the asset as so claimed or by more thansuch amount 25 as may be prescribed in this behalf ; or(ii) that having regard to the nature of the asset and other relevantcircumstances, it is necessary so to do,26and where any such reference is made, the provisions of sub-sections (2), (3), (4),(5) and (6) of section 16A, clauses (ha) and (i) of sub-section (1) and sub-sections21. Inserted by the Taxation Laws (Amendment) Act, 1972, w.e.f. 1-1-1973.22. For relevant case laws, see Taxmann’s Master Guide to Income-tax Act.23. For the meaning of the expression “with a view to . . . a capital asset for the purposes ofthis Chapter”, see Taxmann’s Direct Taxes Manual, Vol. 3.24. Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.1-4-1988.25. Percentage of value of asset referred to in section 55A(b)(i) : 15%/Amount referred to insection 55A(b)(i) : Rs. 25,000. [Rule 111AA]26. See rule 111AB. Prescribed form of report of valuation by registered valuer (vide WealthtaxRules) are as follows :(i) Immovable property (other than agricultural lands, plantations, Form O-1forests, mines and quarries)(ii) Agricultural lands (other than coffee, tea, rubber and cardamom Form O-2plantations)(iii) Coffee, tea, rubber or cardamom plantations Form O-3(iv) Forests Form O-4(v) Mines and quarries Form O-5(Contd. on p. 1.348)