Capital gain relief on compulsory acquisition - deferral where replacement asset is acquired and unutilised proceeds deposited under scheme. Capital gain from compulsory acquisition of land or building used in an industrial undertaking is deferred if, within three years, the assessee purchases or constructs a replacement asset for shifting or re establishing the undertaking. If the gain exceeds the replacement cost the excess is charged as income and the replacement's cost is nil for computing any capital gain on its transfer within three years; if the gain is equal to or less than the replacement cost the gain is not charged and the replacement's cost is reduced by that amount. Unutilised proceeds must be deposited under a notified government scheme and become taxable if not applied within the specified period.