In Brief
The Supreme Court upheld the High Court's ruling that capital gains from compulsory acquisition of land accrue on the date of the land acquisition award, not the date of initial notification. The assessee's land was notified for acquisition on 15 May 1968, but the award was made on 29 September 1970. The Court held that vesting of land in Government occurs only upon taking possession, which in ordinary acquisitions happens after the award is made. Although the College possessed part of the land before the award, this was tenant-at-sufferance possession, not Government possession. Therefore, capital gains were rightly assessed for the year 1970-71 and the appeal was dismissed.
The lawyer headnote and full judgment text are available to registered users.