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2013 (12) TMI 610 - HC - Income TaxTaxability of claim for damages - Held that:- When the assessee is maintaining the books of account on the basis of actual receipts then damage amount can be brought to tax as and when it will be received after finalization in the appeal pending before the Hon'ble High Court - Following Commissioner of Income- Tax vs. Ghanshyam (HUF) [2009 (7) TMI 12 - SUPREME COURT] - In view of insertion of section 45(5) of the Act - When the assessee-claimant is in receipt of enhanced compensation it shall be treated as "deemed income" and taxed on receipt basis - The year in which enhanced compensation is received is the year of 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.
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