https://www.taxtmi.com/caselaws?id=27247 Compulsory acquisition of land is a transfer for capital gains purposes when possession is taken and the property vests in the Government, not when the acquisition notification is issued. Section 45 of the Income-tax Act taxes gains on transfer in the previous year, and section 2(47) includes compulsory acquisition within transfer. Applying the Land Acquisition Act, title passes only on possession and vesting under section 16, so the relevant date for tax is the date of possession. The possession dates here fell within the previous year relevant to assessment year 1974-75, so the capital gains were chargeable in that year. en-us Tue, 16 Apr 1985 00:00:00 +0530 Thu, 11 Feb 2010 16:47:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=27247 Compulsory acquisition of land is a transfer for capital gains purposes when possession is taken and the property vests in the Government, not when the acquisition notification is issued. Section 45 of the Income-tax Act taxes gains on transfer in the previous year, and section 2(47) includes compulsory acquisition within transfer. Applying the Land Acquisition Act, title passes only on possession and vesting under section 16, so the relevant date for tax is the date of possession. The possession dates here fell within the previous year relevant to assessment year 1974-75, so the capital gains were chargeable in that year. Case-Laws Income Tax Tue, 16 Apr 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=27247