TMI Blog2007 (11) TMI 603X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee must first receive the money. Therefore, accepting the contention of the department would mean depriving the assessee of those benefits or tax relief in all cases where section 17 of the Land Acquisition Act, 1894, has been applied. The only case which deals with the situation where section 17 of the Land Acquisition Act, 1894 has been invoked in Nawab Mahmood Jung Bahadur s case [ 1987 (11) TMI 61 - ANDHRA PRADESH HIGH COURT] . Apparently, in that case, the possession of the land was taken on 12-1-1967 and because section 17 had been invoked, therefore, the award was given on 2-11-1970. The revenue wanted to tax the capital gain in the assessment year 1973-74. This plea was turned down and the questions were answered in favo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 86). The compensation award was given by the Collector/Land Acquisition Officer on 18-9-1986. The remaining compensation amounting to ₹ 1,77,708 pursuant to the said award was received by the respondent on 3-9-1987 (i.e., during assessment year 1988-89). 4. The precise question to be considered is whether the capital gain arising as a result of the said acquisition of land is or is not to be taxed in the assessment year 1984-85 (i.e., when possession was taken). 5. The learned counsel for the department has relied upon a large number of authorities referred below :- 1.CIT v. Nawab Mahmood Jung Bahadur [1988] 172 ITR 5921 (AP) 2.Syed Abdul Basir v. CIT [1988] 170 ITR 566 (Raj.) 3.CIT v. Shiv Chand Satnam Paul [1998] 229 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Income-tax Act, 1961, transfer in relation to a capital asset includes the compulsory acquisition thereof under any law. 9. We have considered the matter and we are of the opinion that the contention of the department in respect of the assessment year 1984-85 overlooks the vital facts namely that where section 17 of the Land Acquisition Act, 1894, has been invoked for the purposes of acquisition of land, possession can be taken even where no award of compensation has been given. For ready reference, the provisions of section 17(1) are reproduced below :- Special powers in cases of urgency.-(1) In cases of urgency, whenever the appropriate Government so directs, the Collector, though no such award has been made, may, on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... od for acquiring the new asset by the assessee, referred to in those sections or, as the case may be, the period available to the assessee under those sections for depositing or investing the amount of capital gain in relation to such compensation as is not received on the date of the transfer, shall be reckoned from the date of receipt of such compensation : Provided that where the compensation in respect to transfer of the original asset by way of compulsory acquisition under any law is received before the 1st day of April, 1991, the aforesaid period or periods, if expired, shall extend up to 31st day of December, 1991. 13. Thus, till the assessment year 1984-85, the assessee was required to invest the capital gain in the specified ..... X X X X Extracts X X X X X X X X Extracts X X X X
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