Capital Valuation & Capital Cost

Dear Anl, distiction between the two is not only difficult but a bit confusing, but you can take the help from the judgment decided by the Supreme Court as reported in : Patel Gordhandas Hargovindas Vs Municipal Commissioner Ahmedaba: 1063-AIR-1742-SC.

Read as 1963-AIR-1742-SC.

Capital Value of an asset is variable and determined from time to time based on certain method of valuation.

The Capital Cost is however fixed as being the cost of asset at a particular point of time which may be date of acquisition or any other date which the statute may deem to be date of acquisition for taxation purposes. The Capital Cost may be either the actual cost of acquisition or the value as determined on the particular date deemed to be date of acquisition.