Capital gains exemption for compulsory acquisition of industrial assets depends on reinvestment, deposit compliance, and later transfer rules. Capital gain on compulsory acquisition of land, building or any right in land or building forming part of an industrial undertaking is exempt if the assessee reinvests within the prescribed period in another land, building, rights in land or building, or a new building for shifting, re-establishing, or setting up an industrial undertaking. Unutilised amounts must be deposited under the notified capital gains scheme before the return due date, and any amount remaining unutilised after three years becomes taxable in the year of expiry. The amount spent and deposited is deemed to be the cost of the new asset.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Capital gains exemption for compulsory acquisition of industrial assets depends on reinvestment, deposit compliance, and later transfer rules.
Capital gain on compulsory acquisition of land, building or any right in land or building forming part of an industrial undertaking is exempt if the assessee reinvests within the prescribed period in another land, building, rights in land or building, or a new building for shifting, re-establishing, or setting up an industrial undertaking. Unutilised amounts must be deposited under the notified capital gains scheme before the return due date, and any amount remaining unutilised after three years becomes taxable in the year of expiry. The amount spent and deposited is deemed to be the cost of the new asset.
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