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The root question is as to whether, on the facts and in the circumstances of the present case, the High Court was right in taking the date of award as the date of accrual of capital gains for the purpose of s. 45 of the Act of 1961 ?

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Sec. 45 of the Income-tax Act, 1961 - Capital gains - If the Revenue has not challenged the correctness of the law laid down by the High Court and has accepted it in the case of one assessee, then it is not open to the Revenue to challenge its correctness in the case of other assessees, without just cause. However, the fact situation of the present case relating to the asst. yr. 1971-72 is not similar to that of the other case of the appellant relating to the asst. yr. 1975-76 and the Revenue is not precluded from taking the stand that the transfer of capital asset in the present case was complete only on the date of award i.e., on 29th Sept., 1970. Supreme Court dismissed the Appeal of the assessee holding that “we have not an iota of doubt that in the second round of proceeding, the AO had rightly assessed the tax liability of the appellant, on long-term capital gains arising on account of acquisition, on the basis of the amount of compensation allowed in the award dt. 29th Sept., 1970 as also the enhanced amount of compensation accrued finally to the appellant; and as regards interest income, had rightly made protective assessment on accrual basis”. - RAJ PAL SINGH V/s CIT - [2020] 316 CTR 225 (SC)

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