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2010 (3) TMI 868 - GUJARAT HIGH COURTCapital gain - abolition of jagir - whether provision of section 45 are applicable where cost is nil - receipt of compensation - agriculture income - held that:- sub-section (5) of section 45 of the Act overrides what is laid down in sub-section (1) of section 45 of the Act. - the provisions of sub-section (5) of section 45 of the Act are a complete code in themselves and operate regardless of operation of section 45(1) of the Act. The enhanced compensation received by the assessee is not amenable to tax under the provisions of section 45(1) read with section 48 of the Act, but is taxable as per the provisions of section 45(5)(b) of the Act. The assessee is, therefore, not entitled to claim that the amount of enhanced compensation cannot be brought to tax by virtue of the cost of acquisition of the capital asset being "nil" in the light of the legislative scheme laid down in section 45(5)(b) of the Act. Nor is it possible to find any legal infirmity in the finding recorded by the Tribunal that the amount of enhanced compensation cannot be treated as agricultural income.
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