TMI Blog2008 (4) TMI 34X X X X Extracts X X X X X X X X Extracts X X X X ..... ENT Rakesh Kumar Garg,J The assessee has filed the present Appeal under Section 260-A of the Income Tax Act, 1961(for short 'the Act') against the order dated 31.1.2007(Annexure A-3) passed by the Income Tax Appellate Tribunal, Delhi Bench 'F' New Delhi (for short 'the Tribunal'), in ITA No.5370/Del/04 for the Assessment Year 2001-02. 2. The assessee firm is a co-operative society and its main object is to acquire land and built houses on that land. The land acquired by the society was compulsorily acquired by the Government. During the year under consideration, the society has received enhanced compensation of Rs.9,45,32,917/- from the reference court comprising of additional compensation of Rs.6,40,00,000/- and interest of Rs.3,0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by Patna Delhi ITAT Benches mentioned by the assessee. iv) However it is very important to note that Government of India duly considered all these judicial pronouncements and made consequent amendments in the I.T.Act. As per the latest position of law in clauses (a), (b), (c) of Section 45(5) of I.T.Act, there remains no ambiguity and receipt of compensation, it's enhanced or reduction by any court there after has been separately considered. Therefore, the enhanced compensation is to be taxed in the year of such receipt. The assessee interest of reduction by any Court later on as pointed out by Hon'ble Supreme Court have been duly safeguarded as per clause(c) of section 45(5) that the assessee can re-computed that the same in the year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cial Bench decision of the Tribunal in the case of Deputy Commissioner of Income Tax Versus Padam Parkash (HUF) 104 TTJ (Del) (SB) 989, wherein it has been held that enhanced compensation for acquisition of land is chargeable to tax in the year in which such compensation is received. However, interest on enhanced compensation is to be assessed on accrual basis from year to year and it can be subjected to tax only after it is finally determined. 7. In view of the stand taken by the Revenue, the Tribunal directed the Assessing Officer to tax the compensation in the year of receipt and interest on enhanced compensation in the assessment year relevant to the previous year in which it is finally determined. In spite of the fact that the reve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upon a judgment of Karnataka High Court in the case of Chief Commissioner of Income Tax Versus Smt. Shanta Vva 267 ITR 67(Karnataka). 11. On the other hand, Shri Yogesh Putney, Advocate, learned counsel for the Revenue/respondent has argued to support the order of the Assessing Officer on the ground that no remedy will be available to the Revenue if the enhanced compensation as well as interest are finally upheld after the prescribed time of issue of notice under Section 148 of the Act. He further argued that in view of the clear provisions of Section 45(5) of the Income Tax Act, the amount of enhanced compensation and interest thereon received by the appellant-assessee is liable to be taxed in the year of its receipt. 12. We find forc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourt and permitted to be withdrawn was taxable at that stage. Secondly, whether the said amount could be taxed when it was specifically deposited by the Government in appeal to the High Court. In the case of CIT Vs. Hindustan Housing and Land Development Trust Ltd. (1986) 161 ITR 524 (SC), the Supreme Court has held that when the Government has appealed against the award the additional amount of compensation was deposited in the court, it was not taxable at that stage as the additional compensation would not accrue as income when it was specifically disputed by the Government in appeal. In view of the said judgment of the Supreme Court,there is no merit in this appeal. No substantial question of law arises. The judgment of the Supreme Co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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