L AMBIKA AMMA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE following two questions expect our answer :

(2.) SEC . 54D of the IT Act speaks of capital gains on compulsory acquisition of lands and buildings that are not to be charged in certain cases. The statutory provision is one of such occasions. Plain reading thereof require that the concerned capital gains sought to be made liable for tax should flow from the transfer. The transfer has to arise by way of compulsory acquisition of any law of a capital asset. The capital asset in question has to be land or building or any right in land or building and at the same time the said capital asset has to form part of an industrial undertaking belonging to the assessee in question.

(3.) ALL the three authorities have taken up and considered as to whether the lodge which came up out of the amount of the assessee's share of the compensation would be an industrial undertaking in regard to which there could be any relief under S. 54D of the Act.