Enhanced compensation taxability turned on factual proof that the amount was credited to the society, not retained by the assessee.

Enhanced compensation was examined in the context of an assessee who had acquired leasehold rights, later sold those rights, and then relinquished its claim in enhancement proceedings under an agreement. The material fact was that the enhanced amount was credited to the society's account and was not retained by the assessee, indicating that the agreement was given effect. The issue therefore turned primarily on factual findings rather than an unresolved legal principle, and on those facts the compensation was treated as not taxable in the assessee's hands.

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Issues: Whether the compensation received on enhancement was taxable in the assessee's hands in view of the agreement by which the assessee relinquished its rights in the appeal for enhancement and the enhanced amount was credited to the society.

Analysis: The assessee held leasehold rights which were acquired, and although an award had been made, the assessee subsequently sold its rights and entered into an agreement under which it relinquished its claim in the enhancement proceedings. The finding recorded was that the enhanced compensation was credited to the society's account and was not retained by the assessee, showing that the agreement was acted upon. On these facts, the matter turned on a question of fact rather than any unresolved legal controversy.

Conclusion: The compensation was not taxable in the assessee's hands, and the reference petition failed.

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