2008 (7) TMI 118

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....s contemplated by the statute for the purpose of claiming exemption under section 54EA of the Act or it would be sufficient if any other amount equivalent to the same is invested even before the date of receipt of the compensation ?" 2. The assessee is an individual. The relevant assessment year is 2000-01. The assessee filed a return of income estimating a total income of Rs. 29,93,550. The return was processed under section 143(1) of the Income-tax Act. In the return, it was found that the assessee had received enhanced compensation in respect of the land compulsorily acquired from him by the Government. The amount of enhanced compensation received during the assessment year 2000-01 was Rs. 1,49,37,591. In addition to the compensation ....

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....es), the capital gain shall be dealt with in accordance with the following provisions of this section, that is to say,- (a) if the cost of the specified securities is not less than the net consideration in respect of the original asset, the whole of such capital gain shall not be charged under section 45; (b) if the, cost of the specified securities is less than the net consideration in respect of the original asset, so much of the capital gain as bears to the whole of the capital gain the same proportion as the cost of acquisition of the specified securities bears to the net consideration shall not be charged under section 45. (2) Where the specified securities are transferred or converted (otherwise than by transfer) into money a....

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....the transfer of a capital asset, means the full value of the consideration received or accruing as a result of the transfer of the capital asset as reduced by the expenditure incurred wholly and exclusively in connection with such transfer." 4. The finding recorded by the authorities below are as under : 5. The assessee has received the original compensation towards the capital asset, vide civil court order dated December 1, 1995. This order was a subject-matter of appeal before the High Court. The High Court stayed this order on the condition of the Government depositing Rs. 2,98,75,181. Out of this, the assessee was permitted to withdraw 25 per cent. of the amount by furnishing security. The assessee received the compensation on Jul....