29.  Cost of acquisition, and consideration for transfer, how determined.-

(1)   Where the capital asset became the property of the assessee-

(a)    under a gift, bequest or will; or

(b)    by succession, inheritance or devolution; or

(c)    on any distribution of assets on the dissolution of a firm or other association of persons or the partition of a Hindu undivided family; or

(d)    on any distribution of assets on the liquidation of a company; or

(e)    under a transfer to a revocable or an irrevocable trust,

        the fair market value of the asset, as on the date on which it became the property of the assessee, shall, for the purposes of sub-section (1) of section 28, be deemed to be the cost of acquisition.

(2)   Where the person who acquires a capital asset from an assessee is directly or indirectly connected with him and the Deputy Commissioner has reason to believe that the transfer was effected with the object of avoiding or reducing the liability of the assessee, the fair market value of the capital asset, as on the date of the transfer, shall be deemed to be the consideration received by the assessee for its transfer.

(3)   For the purposes of sub-section (1) and (2) and sub-section (12) of section 12, "fair market value" means-

(a)    the price which the capital asset would ordinarily fetch on sale in the open market on the relevant date; and

(b)    where the price referred to in clause (a) is not ascertainable, such price as may be determined by the Deputy Commissioner after obtaining the approval of the Inspecting Additional Commissioner in writing.