Treatment of capital gains on distribution of assets on partition of HUF shall be as under: - Section 47: No capital gains shall arise to HUF on distribution of assets on partition of HUF. - Section 49(1): Cost of acquisition of such assets to the member shall be the cost of acquisition of such asset in the hands of HUF. - Period of holding of assets of transferor shall also be considered for computing the period of holding of assets in the hands of transferee.