Section 45 of the Income-tax Act, 1961 - Capital gains- Since the actual date of possession of the land is not available, matter restored to the file of ITO who should find out the actual date of possession of the lands by the Government.

Facts: The root question is as to whether 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 ?

Held, that similar issue came up for consideration before in the case of the assessee itself for the asst. yr. 1975-76 and vide orders, we have held that it was a case which fell under s. 17 of the Act and, therefore, capital gains were assessable on the basis that the transfer took place on the date of possession of lands by the Government. Since the actual date of possession of the land is not available, we are of the opinion that the matter should be restored to the file of the ITO who should find out the actual date of possession of the lands by the Government. In case the possession of the lands was taken by the Government prior to the date of award and before 1st April, 1970, the capital gains will not be included in the income for the asst. yr. 1971-72. If the possession of the lands was also taken during the period 1st April, 1970 to 31st March, 1971, the capital gains will be assessable for the asst. yr. 1971-72. After finding the actual date of possession by Government the ITO, he shall recompute the income on the above basis.RAJ PAL SINGH vs. CIT.[2020] 28 ITCD Online 006 (SC)