AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2004 (2) TMI 45
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....d the market price at Rs. 7 per sq. ft. plus solatium and interest. The judgment of this court was challenged by the Land Acquisition Officer before the Supreme Court in C.A. No. 12884 of 1996. In terms of the interim orders of this court and the Supreme Court, the respondent received four sums of Rs. 2 lakhs each on April 1,1993, June 13,1993, July 14,1993 and November 30,1993, by furnishing security to the satisfaction of the reference court. Ultimately, the Supreme Court, by order dated September 23,1996, set aside the orders of this court and the reference court and remanded the matter to the reference court for fresh determination of the market value with the following directions: "The cases are remitted to the civil court for decision afresh after giving an opportunity to the parties to adduce evidence afresh and then decide the market value according to law. Pending these appeals since the respondents have withdrawn the amount as per the interim direction passed by this court, the same may not be disturbed and the amount withdrawn will be adjusted when the award was passed by the reference court." The Assessing Officer by order dated March 4,1997, passed in regard t....
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....ted with reference to the compensation awarded in the first instance. . . shall be chargeable as income under the head 'Capital gains' of the previous year in which such compensation or part thereof, or such consideration or part thereof, was first received; and (b) the amount by which the compensation or consideration is enhanced or further enhanced by the court, Tribunal or other authority shall be deemed to be income chargeable under the head 'Capital gains' of the previous year in which such amount is received by the assessee." The Assessing Officer treated the sum of Rs.8 lakhs received by the respondent as interim payment, as enhanced compensation. The Tribunal has rightly held that the amount received by the respondent is not enhanced compensation. As the Supreme Court set aside the award of the reference court and judgment of this court in appeal and remanded the matter to the reference court for fresh determination, the question whether the assessee is entitled to enhanced compensation and if so the quantum thereof, is yet to be determined. The sum of Rs.8 lakhs was received by the assessee, not as enhanced compensation, but as payments in pursuance of the interim or....
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....nts, made subject to the final orders of the court. We may clarify the effect of clauses (a) and (b) of section 45(5) with reference to the following two illustrations: -------------------------------------------------------------------------------- Illustration I Illustration II -------------------------------------------------------------------------------- 1-5-1990 Award of the LAO Award by the LAO (Rs. 50,000) (Rs. 50,000) 1-8-1990 Receipt of Rs. 50,000 Receipt of Rs. 50,000 by the assessee by the assessee. 10-6-1992 Award of reference court &nb....
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....posited by Rs. 40,000 deposited by the LAO by furnishing the LAO. security, subject to final decision in the appeal 1-7-1994 Decision of the High Decision of the High Court Court reducing the increasing the compensation compensation to to Rs. 1,00,000 (no further Rs. 80,000 (no further appeal). a....
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.... tax chargeable to tax for the assessment for the assessment year year 1993-94, under the head of capi- 1995-96, under the head of tal gains for the previous year; capital gains for the previous year; (iii) The sum of Rs. 10,000 (iii) The sum of Rs. 10,000 shall shall be chargeable to tax be chargeable to tax,as capital as capital gain for the gain for the previous year, rele- previous year,relevant to vant to the assessment year the assessment year 1996-97. 1996-97. ....