https://www.taxtmi.com/caselaws?id=37782 In compulsory acquisition, capital gains are computed on the compensation actually received when possession is taken, because the Land Acquisition Officer's award is only a provisional offer and the acquisition is not finally concluded until compensation is judicially determined. Later enhancement of compensation can be given effect through the statutory recomputation mechanism. Section 52(2) of the Income-tax Act does not apply to such transfers, since compulsory acquisition is not a case of declared understated consideration. A separate direction to adopt revised compensation was unnecessary because the statute itself provides the machinery for later adjustment. en-us Wed, 07 Feb 1979 00:00:00 +0530 Thu, 01 Apr 2010 10:48:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37782 In compulsory acquisition, capital gains are computed on the compensation actually received when possession is taken, because the Land Acquisition Officer's award is only a provisional offer and the acquisition is not finally concluded until compensation is judicially determined. Later enhancement of compensation can be given effect through the statutory recomputation mechanism. Section 52(2) of the Income-tax Act does not apply to such transfers, since compulsory acquisition is not a case of declared understated consideration. A separate direction to adopt revised compensation was unnecessary because the statute itself provides the machinery for later adjustment. Case-Laws Income Tax Wed, 07 Feb 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37782