https://www.taxtmi.com/caselaws?id=26662 For capital gains on compulsory acquisition of agricultural land, the cost of acquisition is to be taken with reference to 1 January 1954, not 1 April 1970, because the asset must be a capital asset at the date of transfer and the later statutory entry into the capital-asset definition does not shift the base date. Solatium paid on compulsory acquisition forms part of the transfer consideration and is includible in capital gains computation. Expenditure incurred in seeking enhancement of compensation is deductible as expenditure wholly and exclusively in connection with the transfer. Severance compensation for injury to the remaining land is not part of consideration for transfer and is excluded from capital gains. en-us Thu, 06 Feb 1986 00:00:00 +0530 Sat, 06 Feb 2010 16:13:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=26662 For capital gains on compulsory acquisition of agricultural land, the cost of acquisition is to be taken with reference to 1 January 1954, not 1 April 1970, because the asset must be a capital asset at the date of transfer and the later statutory entry into the capital-asset definition does not shift the base date. Solatium paid on compulsory acquisition forms part of the transfer consideration and is includible in capital gains computation. Expenditure incurred in seeking enhancement of compensation is deductible as expenditure wholly and exclusively in connection with the transfer. Severance compensation for injury to the remaining land is not part of consideration for transfer and is excluded from capital gains. Case-Laws Income Tax Thu, 06 Feb 1986 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=26662