TMI Blog2013 (12) TMI 847X X X X Extracts X X X X X X X X Extracts X X X X ..... d, so no addition can be made on the notional income. However, the department is always at liberty to charge tax as and when the amount will be received by the assessee. - Decided against the revenue. - Income Tax Appeal No. - 27 of 2001, Income Tax Appeal No. - 28 of 2001, Income Tax Appeal No. - 29 of 2001, Income Tax Appeal No. - 32 of 2001, Income Tax Appeal No. - 132 of 2001 - - - Dated:- 11-12-2013 - Hon'ble Dr. Satish Chandra And Hon'ble B. Amit Sthalekar,JJ. For the Appellant : B. J. Agrawal,A.N.Mahajan,R.K. Upadhyay For the Respondent : P. Agrawal ORDER The present appeals have been filed by the Department under Section 260-A of the Income Tax Act, 1961 against the judgment and orders dated 26.6.2000 and 20.12.20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fter the expiry of the time schedule agreed upon between contracting parties in view of section 55 of the Indian Contract Act ? (4) Whether on the facts and in the circumstances of the case, the Ld. ITAT was legally justified in holding that the contract as per agreement dated 22.8.1989 has become voidable in view of non performance by Acharya Arundeve (Second party) and subsequent letter by Sri Dev Kumar Agrawal (first party) asking for payment till 30.4.1990 whereas there was part performance of the contract by first payment of Rs.25 lac ?" Brief facts of the case are that the assessee is a member of the Association of Persons (AOP), comprising 12 other persons and formed a Business identity known as M/s Devidayal Builders and Develop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t submits that the assessee is following the mercantile system of accounting so the accrued interest is to the subject tax. For this purpose, he reads out para 5.20 of the Tribunal's order. He also submits that the agreement dated 15.7.1987 had lapsed, so new agreement dated 28.8.1989 was entered into. In the year 1993, another agreement was entered into where it was stated that in lieu of money, alternative land will be provided in Ghaziabad and Bombay but the same was not provided. Lastly he relied on the orders passed by A.O. and C.I.T (A). On the other hand, Sri Piyush Agarwal, learned counsel for the assessee relied on the order passed by the Tribunal. He submits that there were three agreements entered into between the parties but t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ced compensation it shall be treated as "deemed income" and taxed on receipt basis. Hence, the year in which enhanced compensation is received is the year of taxability. Consequently, 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. 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)." By considering t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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