The case revolves around the taxability of compensation received by the United Provinces Electric Supply Company for the compulsory acquisition of its electricity undertakings by the Uttar Pradesh State Electricity ... Board under Section 6 of the Indian Electricity Act, 1910. The Income Tax Officer added Rs.1,29,35,557/- to the company's income under Section 41(2) of the Income Tax Act, treating it as profits from the sale of depreciable assets during the assessment year 1965-66.