Exemption Of Capital Gains From The Acquisition Of Industrial
Undertakings
Under
the provisions of Section 54D there is an exemption provided in the case of a
person owning an industrial undertaking, whether land or building used by him
for the purposes of business or the industrial undertaking is compulsorily
acquired. Such exemption is available in cases where the land or building which
is compulsorily acquired was used by the assessee for the purposes of the
business of the industrial undertaking during the 2 years immediately
preceding the date of compulsory acquisition and the assessee purchases any
other land or building or constructs any building, within 2 years from
the date of compulsory acquisition, for the purposes of shifting or re-establishing
the industrial undertaking or setting up another industrial undertaking. In
such cases the capital gain will not be charged to tax to the extent it is
utilised for purchasing or constructing, as the case may be, a new asset.