TaxTMI 
TaxTMI 
1973 (2) TMI 30
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....ital gains arising to the assessee in the assessment year 1963-64 is valid in law?" The year of assessment is 1963-64 and the relevant previous year ended on October 28, 1962. During that previous year, a property which belonged to the assessee was compulsorily acquired under the Land Acquisition Act (1 of 1894). It is admitted in the application moved by the assessee before the Tribunal under section 256(1) that the transfer of the property took place on April 1, 1962, and that the award of the Land Acquisition Officer was passed on April 5, 1962 (vide paragraph 3 of the reference application at page 19 of the paper book). The Land Acquisition Officer awarded Rs. 40,208 as compensation. There was a reference to the Subordinate Judge, Kozh....
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....te judge had been appealed against by the State before the High Court and in the appeal the State contested the quantum of the compensation awarded by the sub-judge to the extent of Rs. 38,525 and, therefore, the sum of Rs. 38,525 was a contingent liability and should be deducted in computation of the capital gains for the year 1963-64. A further contention was raised before the Tribunal that the compensation payable got crystallized only when the subordinate judge passed its judgment on January 15, 1965 and, therefore, should have been assessed only for the year 1966-67. This latter contention was negatived by the Tribunal on the ground that the principle of equitable estoppel will apply and the assessee having written to the Income-tax Of....
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....ng from the transfer of a capital asset effected in the previous year. Such profits or gains are chargeable to income-tax under the head "capital gains" and shall be deemed to be the income of the previous year in which the transfer took place. The only questions, therefore, are was there any transfer in the previous year and what was the quantum of the profits and gains arising from such transfer. As we indicated already, that there was a transfer in the previous year is admitted. The profits and gains arising from that transfer have also been determined by the subordinate judge. The only question is whether the quantum as determined by the subordinate judge can be taken by the taxing authorities to be the quantum of the profits and gains ....