https://www.taxtmi.com/caselaws?id=49422 Where an electricity licence contains an agreed option enabling the Government to purchase the undertaking on specified terms, exercise of that option is treated as a contractual sale rather than compulsory acquisition. The licence conditions, read with the Indian Electricity Act, 1910 and the rules made under it, show that the purchase period and valuation terms form part of the bargain governing the licence. On that basis, acquisition of the building, machinery and plant falls within section 10(2)(vii) of the Income-tax Act, 1922, and the excess over written down value is taxable as deemed profits. en-us Thu, 01 Mar 1962 00:00:00 +0530 Wed, 27 Aug 2014 12:16:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49422 Where an electricity licence contains an agreed option enabling the Government to purchase the undertaking on specified terms, exercise of that option is treated as a contractual sale rather than compulsory acquisition. The licence conditions, read with the Indian Electricity Act, 1910 and the rules made under it, show that the purchase period and valuation terms form part of the bargain governing the licence. On that basis, acquisition of the building, machinery and plant falls within section 10(2)(vii) of the Income-tax Act, 1922, and the excess over written down value is taxable as deemed profits. Case-Laws Income Tax Thu, 01 Mar 1962 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49422