In Brief
This case concerns when capital gains accrue for income-tax purposes in land acquired under the Land Acquisition Act, 1894. The appellant contended that gains accrued on the date of preliminary notification; the revenue argued accrual occurred on the date of award. The Supreme Court held that, under ordinary acquisition proceedings, the transfer of land to the State is complete only on the date of award, when legal vesting occurs. Therefore, capital gains accrue on the award date, not the notification date. The court rejected arguments based on an urgency acquisition as inapplicable to the ordinary process followed in this case. The appeal was dismissed.
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