TaxTMI 
TaxTMI 
TaxTMI 
1989 (9) TMI 61
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....nder section 256(1) of the Income-tax Act, 1961, raises, at the behest of the Revenue, the following question : "Whether, on the facts and circumstances of the case, the assessee acquired only a right to litigate and did not hold any interest in the lease hold land and hence the compensation amount of Rs. 4,23,044.67 is not liable to capital gains ?" For reasons that will become apparent, we ref....
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....,82,075 within a period of five years from the date upon which it obtained possession of the said plot. The payments were not made by the assessee. Possession of the said plot was not given to the assessee. No formal agreement was entered into. On February 17, 1954, the assessee received a notice under section 4 of the Land Acquisition Act, 1894, stating that the said plot was proposed to be acqu....
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....ax Appellate Tribunal that the compensation amount attracted tax being capital gain. The Tribunal found that the assessee had no proprietary interest in the said plot but only a right to sue for a lease thereof. It did not, therefore, hold a capital asset and there was no question of having transferred or relinquished it. The Tribunal also noted that the interest of the assessee in the said plot, ....
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.... assessee of a capital asset during the year ended 30th June, 1970. Having regard to the consent terms that were entered into, we must proceed upon the basis that the assessee had a right or interest in the said plot. That right or interest ceased when the said plot was acquired and that was long before the commencement of the previous year in question. Thereupon, the assessee obtained the right t....