https://www.taxtmi.com/caselaws?id=26914 Compensation on compulsory acquisition of agricultural land was analysed by reference to the land's true character at the time of acquisition. Because the land remained agricultural and no development steps had been taken before acquisition, the compensation was not treated as business income. It was also not taxable as capital gains, as agricultural land is excluded from the definition of a capital asset. A section 4 notification under the Land Acquisition Act merely indicated an intention to acquire and did not, by itself, sterilise the land or convert stock-in-trade into a capital asset. en-us Wed, 14 Nov 1984 00:00:00 +0530 Tue, 09 Feb 2010 12:46:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=26914 Compensation on compulsory acquisition of agricultural land was analysed by reference to the land's true character at the time of acquisition. Because the land remained agricultural and no development steps had been taken before acquisition, the compensation was not treated as business income. It was also not taxable as capital gains, as agricultural land is excluded from the definition of a capital asset. A section 4 notification under the Land Acquisition Act merely indicated an intention to acquire and did not, by itself, sterilise the land or convert stock-in-trade into a capital asset. Case-Laws Income Tax Wed, 14 Nov 1984 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=26914