https://www.taxtmi.com/caselaws?id=25083 In compulsory acquisition, capital gains are taxable in the year of transfer when possession is taken under urgency provisions and the land vests in the Government free from encumbrances; a later compromise on enhanced compensation does not alter that tax year, so the gains were not assessable in assessment year 1973-74. Statutory interest under section 34 of the Land Acquisition Act accrues from year to year for the period between possession and payment and must be assessed accordingly; as no part related to the relevant year, it was not taxable in assessment year 1973-74. Both issues were answered in favour of the assessee. en-us Tue, 24 Nov 1987 00:00:00 +0530 Mon, 25 Jan 2010 12:29:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=25083 In compulsory acquisition, capital gains are taxable in the year of transfer when possession is taken under urgency provisions and the land vests in the Government free from encumbrances; a later compromise on enhanced compensation does not alter that tax year, so the gains were not assessable in assessment year 1973-74. Statutory interest under section 34 of the Land Acquisition Act accrues from year to year for the period between possession and payment and must be assessed accordingly; as no part related to the relevant year, it was not taxable in assessment year 1973-74. Both issues were answered in favour of the assessee. Case-Laws Income Tax Tue, 24 Nov 1987 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=25083