2010 (7) TMI 630

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....and in the circumstances of the case, the ITAT was right in law in holding that the capital gain could be taxed only in the assessment year relevant to the previous year in which the delivery of the possession of the property was given and not in the year in which the compensation was determined and the payment was received by the assessee?" 2. The assessee owned property which was acquired under the provisions of the Punjab Development of Damaged Areas Act, 1951 (in short "the Punjab Act"). The Assessing Officer taxed the amount of capital gain by taking the transfer of property on 27-8-1979 on which date the award of compensation was given. The assessee challenged this by submitting that date of transfer of property should be when poss....

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....unsel for the revenue. None appeared for the assessee. 4. Learned counsel for the revenue submitted that since the award was given by the Land Acquisition Collector on 27-8-1979, that would be the date when the capital gain was exigible to Income-tax and the Assessing Officer had rightly assessed the same in the assessment year 1980-81. Learned counsel placed reliance on the judgments of Delhi High Court in CIT v. Ram Mohan Rai (HUF) [1993] 110 CTR (Delhi) 200 and Gauhati High Court CIT v. Cachar Native Joint Stock Co. Ltd. [1997] 223 ITR 754. 5. We do not find any merit in the contention of the learned counsel for the revenue. 6. Section 45 of the Act brings to tax any profits or gains arising from the transfer of a capital asset ....