Assessee, a partnership firm engaged in civil contracts, had its land compulsorily acquired by the Government. Compensation was first credited to assessee’s bank account and then transferred to sister concern’s account to discharge its overdraft facility. Assessing Officer treated it as capital gain taxable in assessee’s hands, noting assessee stood guarantor.  CIT(A) affirmed the order of the Assessing Officer. On appeal, the assessee contended that no capital gain arose as income stood diverted by overriding title. Tribunal held that the assessee had claimed TDS credit and shown sister concern as a creditor in the balance sheet. Tribunal held that it was a case of application of income and not diversion by overriding title; therefore, capital gains were held to be taxable in the assessee’s hands.  (AY. 2013-14)