https://www.taxtmi.com/caselaws?id=20750 Compensation received on compulsory acquisition of agricultural land, including standing trees as part of the same composite asset, is a capital receipt and not agricultural income under the Agricultural Income-tax Act, 1950. The character of the receipt depends on acquisition of title, not on later use of the land; once the State acquires the property, the compensation represents the value of the transferred asset. The value of standing trees cannot be separately carved out from the land to treat any part of the compensation as taxable agricultural income. Accordingly, the reopening and remand order could not stand. en-us Tue, 23 Jun 1992 00:00:00 +0530 Tue, 17 Nov 2009 10:38:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=20750 Compensation received on compulsory acquisition of agricultural land, including standing trees as part of the same composite asset, is a capital receipt and not agricultural income under the Agricultural Income-tax Act, 1950. The character of the receipt depends on acquisition of title, not on later use of the land; once the State acquires the property, the compensation represents the value of the transferred asset. The value of standing trees cannot be separately carved out from the land to treat any part of the compensation as taxable agricultural income. Accordingly, the reopening and remand order could not stand. Case-Laws Income Tax Tue, 23 Jun 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=20750