https://www.taxtmi.com/caselaws?id=11071 The High Court allowed the appeal, holding that the enhanced compensation received was not assessable as capital gains under section 45(5)(b) of the Income-tax Act. The court emphasized that the land was originally classified as agricultural at the time of acquisition in 1983, exempting it from capital gains tax. As the land was not considered a capital asset when acquired, the enhanced compensation could not be taxed as capital gains in a subsequent year. The court's decision was based on the principle that the asset's nature should be determined at the time of acquisition. en-us Thu, 15 Jul 2004 00:00:00 +0530 Thu, 30 Jul 2009 17:58:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=11071 The High Court allowed the appeal, holding that the enhanced compensation received was not assessable as capital gains under section 45(5)(b) of the Income-tax Act. The court emphasized that the land was originally classified as agricultural at the time of acquisition in 1983, exempting it from capital gains tax. As the land was not considered a capital asset when acquired, the enhanced compensation could not be taxed as capital gains in a subsequent year. The court's decision was based on the principle that the asset's nature should be determined at the time of acquisition. Case-Laws Income Tax Thu, 15 Jul 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=11071