1986 (1) TMI 128

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....me grounds. They are, therefore, dealt with by this common order. 2. The facts briefly are that the assessees constituted an HUF and owned certain lands which were acquired by the Government and compensation paid thereon. Capital gains resulted therefrom and the question was regarding taxing the same. The HUF had carried out a partition. This was not accepted by the ITO. He taxed the capital ga....

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....assessees as substantive. Further, on finding that the assessees had received the enhanced compensation by the judgment of the Gujarat High Court, he took the enhanced figure for the purpose of computation of capital gains. He confirmed the rest of the order of the ITO. Regarding the claim to deduction of improvement charges an affidavit of Shri Bachubhai Ramjibhai, the then karta, was filed befor....

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....ensation for the land. He relied upon the following two observations: "We have already held that the 15 per cent solatium is not integrated with the market value but is a gift or addition provided under the statute...." [Emphasis supplied]---State of Madras v. Balaji Chettiar AIR 1959 Mad. 16, 21. "... but a statutory right to receive the additional solatium on compulsory acquisition cannot ....

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....lsion involved in the transfer. However, the transfer in this case has to be taken as a whole. In the circumstances there would not be any transfer but for the compulsion and the two cannot be separated. There is a transfer because there is compulsion and the total payment including solatium is for the transfer. The Bombay High Court was dealing with the question whether the solatium was property ....