Agricultural land compensation outside municipal limits avoids capital-gains tax; structure compensation permits cost-of-acquisition deduction in compulsory acquisitions.

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....Compulsory-acquisition compensation for agricultural land in the Hazira Notified Area was not chargeable to capital-gains tax because the land lay outside a municipal area, retained its agricultural character, and was used for agricultural operations. The resulting capital-gains addition on land compensation did not survive. For compensation attributable to built-up structures and other assets acquired with the land, 60 per cent of the relevant compensation was allowable as cost of acquisition when computing consequential capital gains.....