https://www.taxtmi.com/caselaws?id=55592 Compensation received on compulsory acquisition of agricultural land was treated as outside capital gains because the land was not a capital asset on the relevant transfer date. The analysis applied the statutory definition of capital asset together with the deeming rule for compulsory acquisition, and held that the operative date was the date linked to the acquisition process, not the later date of enhanced compensation. A subsequent notification bringing Kalol within a specified urban area could not change the land's character retrospectively. The compensation and solatium were therefore not taxable as capital gains, and the addition was deleted. en-us Fri, 10 Jun 2005 00:00:00 +0530 Sat, 07 Jul 2012 13:13:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=55592 Compensation received on compulsory acquisition of agricultural land was treated as outside capital gains because the land was not a capital asset on the relevant transfer date. The analysis applied the statutory definition of capital asset together with the deeming rule for compulsory acquisition, and held that the operative date was the date linked to the acquisition process, not the later date of enhanced compensation. A subsequent notification bringing Kalol within a specified urban area could not change the land's character retrospectively. The compensation and solatium were therefore not taxable as capital gains, and the addition was deleted. Case-Laws Income Tax Fri, 10 Jun 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=55592