In circumstances specified under column B of the Table below, the actual cost of the capital asset shall be as specified in column C thereof. Table Sl. No. Specified circumstances Determination of actual cost A B C 1. Where capital asset is transferred Actual cost to amalgamated by an amalgamating company to an company shall be the same as it amalgamated company being an would have been if the Indian company in a scheme of amalgamating company had amalgamation. continued to hold such capital asset for the purpose of its own business. 2. Where capital asset is transferred Actual cost to resulting company by a demerged company to a resulting shall be the same as it would have company being an Indian company in been, if the demerged company had a demerger. continued to hold such asset for the purpose of its own business, which shall not exceed the written down value of such capital asset in the hands of demerged company. A B C 3. Where inventory is converted Fair Market Value as on date of into capital asset. conversion, as determined in the manner as prescribed. 4. Where capital asset is acquired Actual cost to previous owner by the assessee by way of gift or as reduced by the depreciation inheritance. allowable up to the immediately preceding tax year, as if such asset was the only asset in the relevant block of asset. 5. Where a building, being the Actual cost of the building as property of the assessee, is put to use reduced by the depreciation— for the purpose of business or (a) that would have been profession during the tax year. allowable had the building been used for the purpose of business from the date of acquisition; and (b) calculated at the rate in force on the date on which such asset was put to use for business. 6. Where capital asset is transferred Actual cost to the transferee- by— company shall be the same as it would have been, if the transferor (a) a holding company to its company had continued to hold subsidiary company; or such asset for the purpose of its (b) a subsidiary company to its own business. holding company, and the conditions of
section 70(1)(c) 30 and (d) are satisfied. 7. Where a capital asset, which (a) Actual cost of the asset in previously belonged to the assessee, the hands of assessee, when it was is reacquired by the assessee. first acquired, as reduced by the depreciation allowable up to the immediately preceding tax year, as if such asset was the only asset in the relevant block of asset; or (b) actual price for which such asset is reacquired by the assesse, 40 whichever is lower. 8. Where the capital asset is Actual cost of asset to the acquired by the assessee from assessee shall be the written down previous owner and subsequently value of the asset in the hands of asset is given back to the previous the previous owner at the time of 45 owner by way of lease, hire or transfer by the previous owner. otherwise, and— (a) the asset was being used for the purpose of business by the previous owner; and (b) depreciation has been claimed by the previous owner. A B C Where the capital asset is used in Actual cost of asset as reduced 9. business after it ceases to be used for by deduction allowed for the scientific research related to that capital asset under
section 45(1)(a) business and a deduction is made or (c) or under any corresponding under
section 33(3). provision of the Income-tax Act, 1961(43 of 1961). 10. Where the assessee had acquired Actual cost of the asset as an asset outside India, as a non- reduced by the depreciation–– resident, and the asset is brought by (a) that would have been him to India and put to use in allowable had the asset been business or profession in India. used for the purpose of business or profession in India since the date of its acquisition; and (b) calculated at the rate in force. 11. Where capital asset is acquired Actual cost of the asset, as if under the scheme of corporatisation there was no corporatisation. of a recognised stock exchange approved by the Securities and Exchange Board of India. 12. (a) Where deduction under Actual cost shall be deemed to
section 46 was allowed or allowable be nil. in respect of the capital asset— (i) to the assessee; or (ii) to any person and the assessee acquires or receives such asset through special modes of acquisition from such person.
(b)Where deduction allowed Actual cost of the asset as under
section 46 in respect of a reduced by the depreciation,— capital asset becomes deemed (a) that would have been income as per
section 46(9)(b). allowable had the asset been used for the purpose of business since date of acquisition; and (b) calculated at the rate in force. 13. Where any amount is paid or Actual cost shall not include so payable as interest in connection much of such amount as is with the acquisition of an asset. relatable to any period after such asset is first put to use.
