TMI Blog2015 (2) TMI 117X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tribunal, which shall consider the issues afresh in light of the provisions of law - Tax Appeal No. 1287 of 2007, Tax Appeal No. 1333 of 2007 - - - Dated:- 10-12-2014 - KS Jhaveri And K. J. Thaker,JJ. For the Petitioner : Mr. Pranav G Desai, Adv. For the Respondent : Mr Tushar P Hemani, Adv. JUDGMENT (Per : Honourable Mr. Justice KS Jhaveri) 1. The revenue has filed these appeals u/s.260A of the Income Tax Act, 1961 (for short, the Act) being aggrieved by and dissatisfied with the order dated 31.01.2006 passed by the Income Tax Appellate Tribunal, Rajkot (for short, the Tribunal) in I.T.A. No. 1260/Rjt/2005 and allied matters. 1.1 This court vide order dated 13.12.2007 admitted the appeals for consideration of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. As discussed hereinabove, Section 23(1A) provides for additional amount. It takes care of increase in the value at the rate of 12 % per annum. Similarly, under Section 23(2) of the 1894 Act there is a provision for solatium which also represents part of enhanced compensation. Similarly, Section 28 empowers the court in its discretion to award interest on the excess amount of compensation over and above what is awarded by the Collector. It includes additional amount under Section 23(1A) and solatium under Section 23(2) of the said Act. Section 28 of the 1894 Act applies only in respect of the excess amount determined by the court after reference under Section 18 of the 1894 Act. It depends upon the claim, unlike interest under Section 34 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eration as so reduced by such court, Tribunal or other authority to be the full value of the consideration. For giving effect to such recomputation, the provisions of the newly inserted (w.e.f. 1.4.2004) section 155(16) by the Finance Act, 2003 (32 of 2003), have been enacted. 35. It was urged on behalf of the assessee that Section 45(5)(b) of the 1961 Act deals only with reworking, its object is not to convert the amount of enhanced compensation into deemed income on receipt. We find no merit in this argument. The scheme of Section 45(5) of the 1961 Act was inserted w.e.f. 1.4.88 as an overriding provision. As stated above, compensation under the L.A. Act, 1894, arises and is payable in multiple stages which does not happen in cases of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of Section 45(5)(c) and Section 155(16) w.e.f. 1.4.04, the receipt of enhanced compensation under Section 45(5)(b) was taxable in the year of receipt which is only reinforced by insertion of clause (c) because the right to receive payment under the 1894 Act is not in doubt. It is important to note that compensation, including enhanced compensation/consideration under the 1894 Act, is based on the full value of property as on date of notification under Section 4 of that Act. When the Court/Tribunal directs payment of enhanced compensation under Section 23(1A), or Section 23(2) or under Section 28 of the 1894 Act it is on the basis that award of Collector or the Court, under reference, has not compensated the owner for the full value of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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