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TMI Blog2010 (7) TMI 630X X X X Extracts X X X X X X X X Extracts X X X X ..... - Decided in the favour of assessee - 350 OF 1995 - - - Dated:- 2-7-2010 - ADARSH KUMAR GOEL AND AJAY KUMAR MITTAL, JJ. Ms. Urvashi Dugga for the Appellant. ORDER Adarsh Kumar Goel, J. The Income-tax Appellate Tribunal, Chandigarh Bench (in short "the Tribunal") has referred the following question of law for opinion of this Court under section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act") arising out of its order dated 28-7-1993 in ITA No. 1025/Chandi/86 for the assessment year 1980-81: "Whether, on the facts and in the circumstances of the case, the ITAT was right in law in holding that the capital gain could be taxed only in the assessment year relevant to the previous year in which the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the Punjab Act, the property was to vest absolutely in the Improvement Trust, after possession of the area as given to the Trust. We, therefore, find force in the argument of the ld. counsel and hold that the transfer of property took place on the date of delivery of possession, namely, 21-4-1971 and not on the date of award or the date of payment. Therefore, ground No. 2 is accepted and the orders of the Revenue authorities whereby a sum of Rs. 82,310 has been charged to tax, as capital gains, are cancelled to that extent." 3. We have heard learned counsel for the revenue. None appeared for the assessee. 4. Learned counsel for the revenue submitted that since the award was given by the Land Acquisition Collector on 27-8-1979, that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der being made, the area shall thenceforth vest absolutely in the Trust free from all encumbrances but subject to the payment in due course of compensation by the Trust in accordance with the provisions of this Act: Provided that possession of any building or part of a building shall not be taken unless its occupier has been given at least two weeks' notice, or such longer notice as is considered reasonably sufficient to enable him to remove his movable property from such building without unnecessary inconvenience to himself." 8. A plain reading of the aforesaid provision makes it clear that on delivery of the possession, the land vest absolutely in the Trust free from all encumbrances which is only subject to payment in due course of c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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