2009 (2) TMI 390

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....An item of property belonging to the assessee was notified for acquisition on June 31, 1986. Possession was taken over on October 24, 1987, and the initial compensation was paid to the assessee on January 17, 1989. Even though the assessee filed income-tax return for the year 1988-89 the assessee did not include any income from capital gain. Though the transfer took place in the previous year relevant for the said assessment year. By Finance Act, 1991, an amendment was introduced to section 5(5) (a) providing for levy of income-tax on capital gains arising out of compulsory acquisition of land on receipt of initial compensation. Since the assessee received initial compensation only on January 17, 1989, and under lie amended provisions which....

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....owever, there is nothing to indicate that there is any bona fides in this claim because land was not agricultural and even if it is agricultural land it was situated within the municipality and so much so there is no justification for claiming exemption on this ground. Further, this ground was found against the assessee by all the authorities and the assessee is not in appeal before us. Therefore, the only question to be considered is whether the assessment completed under section 147 for the assessment year 1989-90 is valid or not. Even though transfer took place on October 24, 1987, by virtue of the retrospective amendment to section 45(5) (a) of the Act the capital gains on account of compulsory acquisition of land should be assessed in ....