Tuhi Ram vs Land Acquisition Collector & Ors.

Whether the Parliament is competent to enact Section 2(14)(iii) of the Income Tax Act 1961 to tax capital gains from agricultural land situated in specified urban/semi-urban areas --- Held Yes. Whether compensation received for compulsory acquisition of agricultural land under the Land Acquisition Act or Requisition and Acquisition of Immovable Property Act 1952 constitutes capital gains taxable under the Income Tax Act 1961 --- Held Yes. Whether interest on such compensation is subject to tax deduction at source under Section 194A of the Income Tax Act 1961 --- Held Yes.