https://www.taxtmi.com/caselaws?id=23072 On compulsory acquisition, enhanced compensation granted later is treated as an accretion to the original consideration and relates back to the date of transfer. The High Court held that, for section 45 of the Income-tax Act, the capital gains liability arises in the year of transfer on the acquisition notification date, not in the year when the enhanced amount is finally determined. The later judicial award does not create an independent receipt in a subsequent year. The statutory scheme, including the recomputation mechanism in section 155(7A), supports assessment in the transfer year, with reopening of that year's assessment if required within the prescribed time. en-us Tue, 09 May 1989 00:00:00 +0530 Wed, 16 Dec 2009 15:11:19 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=23072 On compulsory acquisition, enhanced compensation granted later is treated as an accretion to the original consideration and relates back to the date of transfer. The High Court held that, for section 45 of the Income-tax Act, the capital gains liability arises in the year of transfer on the acquisition notification date, not in the year when the enhanced amount is finally determined. The later judicial award does not create an independent receipt in a subsequent year. The statutory scheme, including the recomputation mechanism in section 155(7A), supports assessment in the transfer year, with reopening of that year's assessment if required within the prescribed time. Case-Laws Income Tax Tue, 09 May 1989 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=23072