TMI Blog1993 (7) TMI 124X X X X Extracts X X X X X X X X Extracts X X X X ..... Trust prepared a scheme for the development of the area on the ground that it was a damaged area and needed to be developed. The relevant law for that purpose was the Punjab Development of Damaged Areas Act, 1951 (in short, Punjab Act.) The assessee held land measuring 1723 sq. yds. at Chowk Ghanta Ghar. The Improvement Trust published a notice in the Official Gazette and two newspapers stating the fact that a scheme has been framed. The boundaries of the locality and the statement of land proposed to be acquired were also specified in that notice. It is stated that the State Government issued a notification dated 10-10-1969 tinder section 5(3) of the Punjab Act. Thereafter, the Improvement Trust made a request to the Collector for acquisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e with or without modifications. Thereafter, the Trust was required to submit the scheme and a statement of objections received to the State Government. The State Government shall then notify a scheme either in original or as modified by it. The scheme so published shall be deemed to be the sanctioned scheme. As per section 6, the Improvement Trust is required to apply to the Collector within three months from the date of publication of the damaged area comprised in the scheme and, if considered necessary, for the immediate delivery of the possession of the whole or any part of that area. The Collector may accept the application and forthwith deliver to the Trust possession of the damaged area and, on such order, the area shall vest absolut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Punjab Act, made it clear that on the delivery of possession, the area in question shall vest absolutely in the Improvement Trust. It will, therefore, mean that the transfer of land took place immediately on taking of possession. Provisions of section 11(b) also made it clear that the Collector has to determine the market value which existed at the time of publication of the scheme under section 4(1). Similarly, clause (d) of the said section says that the market value of the interests of such persons, is also to be determined as it existed at the time of publication of the scheme under section 4(1). Section 13(4) requires that it is the market value which shall be paid in case the difference between the income of the scheme and the cost of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to a scheme prepared by the Improvement Trust. As per that scheme, certain properties were considered to be dangerous for the inhabitants. No compensation was specified in that notification. She has, therefore, argued that it is only the quantification of the compensation which determined the transfer of the property. The earlier proceedings were procedural in nature only. It is the actual amount of compensation ascertained under the award which could be the determining factor for the purpose of ' transfer '. Since the amount was determined by the award dated 27-8-1979, the assessee must be, as per the ld. D.R., held to have received income by way of capital gains in the previous year relevant to assessment year 1980-81. The earlier procee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ale deed in favour of the Government. It was under a statute that the property was compulsorily acquired. The Id. D.R. has also placed reliance on a decision of the Andhra Pradesh High Court in the case of Vittal Reddy v. CIT [1987] 165 ITR 673. In that case, the question which came to be examined was regarding interest on enhanced compensation. Certain lands were acquired and compensation was determined. Thereafter, there was an enhancement of the compensation and interest was also granted on the enhanced compensation. It was held that the interest awarded on the enhanced compensation was liable to be assessed in the same assessment year in which the enhanced compensation was brought to tax. Therefore, this decision is also distinguishable ..... X X X X Extracts X X X X X X X X Extracts X X X X
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