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TMI Blog2006 (1) TMI 70X X X X Extracts X X X X X X X X Extracts X X X X ..... ther received or not on the valuation date of the respective assessment years?" - - - - - Dated:- 21-1-2006 - Judge(s) : P. D. DINAKARAN., P. P. S. JANARTHANA RAJA. JUDGMENT The judgment of the court was delivered by P.P.S. Janarthana Raja J.-These tax appeals were preferred by the Revenue both in respect of income-tax as well as wealth-tax, against the common order passed by the Income-tax Appellate Tribunal dated October 16, 2003, raising the following common substantial questions of law: "1. Whether on the facts and in the circumstances of the case, the Income-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 additi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... over possession by the Government, i.e. October 21, 1980 to March 31, 1990. The entire dispute raised in these appeals are centered around the above aspect of receiving compensation, additional compensation and interest thereon. In respect of wealth tax assessment, it is related to the receipt of compensation and additional compensation. The dispute is whether the assessee had owned the amount of compensation and whether she received it or not on the valuation date of the respective assessment years. Since the assessee had not disclosed any interest income on the additional 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 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 for various assessment years, the Assessing Officer made addition to the return of income under the heading "Other sources", bringing to tax the interest on additional compensation, on the ground that the same had accrued in the various years and held that it is taxable on accr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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, the disputed compensation has to be assessed only when it is finally determined by the higher courts. The Tribunal had rightly held that the additional compensation could not be assessed during the year in question and can be assessed only at a time when the final higher court dec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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