2006 (1) TMI 70

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....come-tax Tribunal is right in law in holding that in acquisition of land proceedings belonging to the assessee made by the State Government and payment of interest on additional compensation made thereof at different points of time due to the fact that appeals were pending are liable to tax at what point of time? 2. Whether on the facts and circumstances of the case section 45(5)(c) and 155(16) of the Income-tax Act are applicable to the fact of the case for the assessment years 1981-82 to 1990-91, 1991-92 and 1993-94? 3. Whether on the facts and in the circumstances of the case, the Income-tax Tribunal is right in law in holding that the assessee did not own the amount of compensation whether received or not on the valuation date of ....

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....ditional compensation for the period April 1, 1984, to March 31, 1985, in the return filed by her for the assessment year 1985-86, the Income-tax Officer had reason to believe that the interest income chargeable to tax for the assessment year 1985-86 had escaped assessment. The appellant owned 5.01 acres of land at Thirupattur which was acquired by the Land Acquisition Officer, Thirupattur under the Land Acquisition Act, by notification issued under section 4 of the Land Acquisition Act, on May 11, 1977. The Housing Board took possession of the land on October 21, 1980. The Land Acquisition Officer had awarded a compensation of Rs. 45,038 on June 20, 1982. The capital gains on this compensation to the tune of Rs.37,190 were offered for t....

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....     2,860.00                          --------------------------- 34,07,341.60 (B) Interest for the period from 21-10-1980 to 20-7-1982 (i.e. From the date of taking over possession by TNHB till the date of award by LAO). Interest for land compensation 7,12,942.60 Interest for tree compensation  462.00    7,14,404.60 --------------------------- 41,21,746.20 Less: Amount awarded by the LAO 45,037.73 ------------- 40,76,708.47 ------------------------------------------------------ While computing the income of the assessee....

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....n raised by the Revenue, In this case the additional compensation awarded by the civil court had not been accepted by the State Government and it has preferred an appeal objecting to the enhancement. Hence, the additional compensation received, could not be treated as part of the compensation received for the transfer of the land until it is finally determined by the High Court or Supreme Court. If the appeal of the State is allowed, the assessee is bound to refund the amount and hence, the same cannot be assessed before reaching finality. The right to receive additional amount awarded by the court as part of the compensation, was only an inchoate right during the pendency of the matter before higher judicial forums. In such circumstances, ....