M/S. Jethmull Bhojraj vs State Of Bihar & Ors on 25 January, 1972
5. The last question related to the particular assessment year in which the said capital gain had to be taxed. The Tribunal has relied on a decision of the Supreme Court in Jetmull Bhojraj v. State of Bihar, AIR 1972 SC 1363, to support its conclusion. The definition of " transfer" contained in Section 2(47) of the Income-tax Act, 1961, provides that the transfer in relation to a capital asset includes the compulsory acquisition thereof under any law. The Tribunal has held that the transfer giving rise to the capital gain of Rs. 3,27,994 took place on April 17, 1964, when possession of the land was taken and the same vested in the Government. This being in the assessment year 1965-66 corresponding to the financial year 1964-65, the capital gain was taxed in the assessment year 1965-66. Learned counsel for the assessee contended that the date of vesting of the property in the Government should be deemed to be the date of the notification issued under Section 4 of the Land Acquisition Act. This contention, being contrary to the provisions of the Land Acquisition Act, cannot obviously be accepted. This question is also, therefore, to be answered against the assessee.