2013 (7) TMI 853

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....2 has been preferred on the following questions of law:- "1. Whether on the facts and circumstances of the case, the Hon'ble ITAT was justified in law in setting aside the case to the file of the AO with the direction to the A.O. to verify whether compensation has been received by the assessee or not, without appreciating that the assessee itself had declared this compensation in its P & L account as 'other Income'. 2. Whether on the facts and circumstances of the case, the Hon'ble ITAT was justified in law in not appreciating the fact that compensation and interest on such compensation has already been settled vide order dated 12.05.1992. 3. Whether on the facts and circumstances of the case, the Hon'ble ITAT was justified in law ....

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....ompensation would be the capital gains in the year in which that enhanced compensation is received. Cost of acquisition in that case would be taken as 'nil'. Clause (c) provides that wherever there is any reduction in compensation or enhanced compensation, then capital gains would be recomputed with respect to such reduced compensation and reduced enhancement. 18. The Assessing Officer accordingly, will verify as to whether assessee has received any compensation during the year in question. If it is so, then it will be taxable accordingly, if not then it will be taxable in the year when it is actually received. So far as interest is concerned, it will be taxable as per decision in Rama Bai's case on accrual basis from year to year with r....