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TMI Blog1983 (9) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... is a HUF and their land bearing final Plot No. 105 situate within Sajpur in Khanpur area within the municipal limits of the City of Ahmedabad was sought to be acquired for the public purpose of main office building of the Reserve Bank of India, vide order and award of the Special Land Acquisition Officer made on February 3, 1971. Since long-term capital gains arose out of the compensation receive ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned the capital gains arising from the amount of compensation awarded at Rs. 3,94,450 after deducting the valuation of the land as on January 1, 1954, estimated at Rs. 8 per square yard for the reasons stated in the order. The assessee being aggrieved by the order of the ITO carried the matter in appeal before the AAC who held that it was rightly brought to tax in the assessment year 1971-72. He, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... justified. At the instance of the Revenue, therefore, the following question has been referred to us in Income-tax Reference No. 210 of 1976: " Whether, on the facts and in the circumstances of the case, the capital gains arising from compulsory acquisition of the land arose in the previous year corresponding to the assessment year 1971-72 and became taxable in that assessment year ?" It appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the case, the amount of Rs. 1,89,453 as long-term capital gains is not liable to be assessed in the hands of the assessee-HUF for the assessment year 1972-73 in question ? " It is trite position in law that capital gains arising out of the receipt of the compensation for the acquired land can be brought to tax in the year in which the transfer is effected as laid down under s. 45 of the I.T. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... land, no urgency powers were exercised by the Collector. We have, therefore, to answer the questions in both the references as under : ITR No. 210 of 1976 : The question is answered in the negative, that is, in favour of the assessee and against the Revenue. ITR No. 51 of 1982 : The question is answered in favour of the Revenue and against the assessee by holding that it is liable to tax in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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