TMI Blog2013 (12) TMI 610X X X X Extracts X X X X X X X X Extracts X X X X ..... taxability - Even in cases where pending appeal, the court/tribunal/authority before which the appeal is pending, permits the claimant to withdraw against security or otherwise the enhanced compensation (which is in dispute), the same is liable to be taxed under Section 45(5) of the Act in the year of receipt - No amount has been received till date by the Assessee pertaining to the damages as claimed by the assessee - Decided against Revenue. - Income Tax Appeal No. - 287 of 2000 - - - Dated:- 11-12-2013 - Hon'ble Dr. Satish Chandra And Hon'ble B. Amit Sthalekar,JJ. For the Appellant : A. N. Mahajan For the Respondent : P. Agrawal ORDER This appeal appeal has been filed by the Department under Section 260-A of the Incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the order of A.O. He also relied on the ratio laid down in the case of P. Mariappa Gounder vs. Commissioner of Income Tax (1998) 232 ITR 2 SC where it was held that " It is only when the trial court determined the amount of mesne profits that the right to receive the same accrued in favour of the appellant. In other words, the liability became ascertained only with the order of the trial court on December 22, 1962, and not earlier. Following the mercantile system of accounting, the mesne profits awarded by order dated December 22, 1962, were rightly taxed in the assessment year 1963-64 and it was wholly irrelevant as to when the amount awarded was in fact realised by the assessee. In our opinion, therefore, the High Court was right in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claimant to withdraw against security or otherwise the enhanced compensation (which is in dispute), the same is liable to be taxed under Section 45(5) of the Act in the year of receipt. Even before the insertion of section 45(5) (c) and section 155 (16) with effect from April 1, 2004, the receipt of enhanced compensation under section 45 (5) (b) was taxable in the year of receipt and this is reinforced by insertion of clause (c)." In the instant case, the Civil Judge has confirmed the award, which is the subject matter in the High Court. No amount has been received till date by the Assessee pertaining to the damages as claimed by the learned counsel for the assessee. In these circumstances, we direct the Assessing Officer to brought th ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
