How to compute the cost in the case of asset received on retirement of partnership firm?
S. 51(4) provides the formula for computation of cost. A – (B + C) where, A= the amount payable to the participant as appearing in the books of account of the unincorporated body on the date of distribution; B= any amount attributable to the change in the value of the bundle on account of revaluation of the bundle, if any, up to the date of distribution; and C= the cost of acquisition of any other asset, if any, forming part of the bundle acquired by the participant, on distribution of the asset to him on account of his retirement from any incorporated body if the cost of acquisition has been allowed as a deduction under section 49 in any earlier FY.
