Law:

Section:

[2008] 303 ITR 245 (Madras) HIGH COURT OF MADRAS K. Mahendar v. Commissioner of Income-tax P.D. DINAKARAN AND MRS. CHITRA VENKATARAMAN, JJ. T. C. (APPEAL) NO. 178 OF 2003 MARCH 20, 2007 Section 45 of the Income-tax Act, 1961 - Capital gains - Chargeable as Mere claim for enhanced compensation cannot be regarded as a receipt to attract provisions of section 45(5)(b); with claim for enhanced compensation under dispute and same pending during assessment year under consideration, conditional receipt would not bestow character of income under section 45(5)(b) The streamlining of the provision of section 45 amply makes it clear that the assessability of the enhanced compensation chargeable under the head 'Capital gains' is only with reference to the previous year in which such amount is received on a final settlement of the quantum of compensation by the Court. Mere claim cannot be regarded as a receipt to attract provisions of section 45(5)(b). With claim for enhanced compensation under dispute and same pending during assessment year under consideration, conditional receipt does not bestow character of income under section 45(5)(b). CASE REVIEW E.D. Sassoon and Co. Ltd. v. CIT [1954] 26 ITR 27 (SC), Anil Kumar Forma (HUF) v. CIT [2007] 289 ITR 245 (Mad) andCWT/CIT v. Girija Amman (T.) (Smt.) [2006] 282 ITR 614 (Mad)followed & relied upon. R. Janakiraman for the Appellant. Mrs. Pushya Sitaraman for the Respondent. JUDGMENT Mrs. Chitra Venkataraman, J.-This appeal is by the assessee challenging the order of the Tribunal on the following substantial questions of law : "(i) Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in law in holding that the sum of Rs. 2,02,624 has to be assessed as 'capital gains' in the assessment year 1991-92 under section 45(5)(b) of the Income-tax Act, 1961? (ii) Whether the Income-tax Appellate Tribunal, on the facts and circumstances of the case, was right in law in upholding the applicability of section 148 of the Income-tax Act, 1961, especially when all the facts were placed before the assessing authority even while filing the return and at the assessment stage itself?" The…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492