Income-tax Appeal No. 572 of 2008 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH --- - . 572 2008 Income Tax Appeal No of : 27.10.2010 Date of decision Nepal Saini --- Appellant Versus , Income Tax Officer -1(3), Ward Faridabad --- Respondent : CORAM ’ . HON BLE MR JUSTICE ADARSH KUMAR GOEL ’ . HON BLE MR JUSTICE AJAY KUMAR MITTAL --- : Present . , Mr Lokesh Sinhal Advocate . for the appellant . , . Mr Yogesh Putney Govt Standing Counsel . for the respondent --- , . AJAY KUMAR MITTAL J 260 - This appeal under Section A of the Income tax , 1961 ( ’ ) Act for short “the Act ” has been filed by the assessee Income-tax Appeal No. 572 of 2008 2 5.4.2007, against the order dated passed by the Income Tax , , Appellate Tribunal Delhi Bench “I” New Delhi in short “the ) . 3980/ /2005, Tribunal” in ITA No Del in respect of the 2000-01, assessment year raising the following substantial : questions of law for determination by this Court 1- Whether the enhanced compensation received by the assessee is taxable in its year of receipt even though the matter with regard to the amount of ? compensation has not been finally adjudicated 2- Whether the assessee was liable to file the return with regard to receipt of enhanced compensation in its year of receipt even though the appeal filed by the assess for further enhancement and one / filed by HUDA State for reduction of the ’ enhancement are pending before this Hon ble ? Court Briefly stated the facts of the case are that - . 18,64,974/- appellant assessee received a sum of Rs on account , of enhanced compensation in respect of his acquired land along .10,08,619/- , with Rs as interest from Haryana Urban Development Income-tax Appeal No. 572 of 2008 3 , 2000-01. Authority in the assessment year It was stated that an appeal is pending in this Court for further enhancement of the . amount of compensation The assessee filed return of income in . , response to various notices issued to him The assessing officer 14.3.2005, 144/147 vide order dated passed under Sections of the . Act computed the income of the assessee at a total sum of Rs 28,73,593/-, 271(1) besides initiating proceedings under Section ( ) 271(1)( ) c for concealment of income and Section b of the Act for - 142(1) 143 non compliance of notices issued under Sections and (2) . of the Act The assessing officer further ordered for charging 234 234 of interest under Sections A and B of the Act from the . assessee The assessee preferred appeal before the - ( ) { ( ) }. Commissioner of Income tax Appeals in short “CIT A ” The ( ) 9.5.2005 CIT A vide order dated held that the assessing officer had erred in bringing to tax the enhanced compensation and interest received thereon for taxation and deleted the addition so . made . The Revenue filed appeal before the Tribunal The 5.4.2007. Tribunal partly allowed the appeal vide order dated Income-tax Appeal No. 572 of 2008 4 ( ), - - While the order of the CIT A in so far as it related to taxability of , , the amount of interest is concerned was upheld but regarding , inclusion of the amount of enhanced compensation the Tribunal held that the amount received by the assessee on that count would be liable to be included in the income chargeable to tax in . ( ) the current assessment year The order of the CIT A to this effect . was set aside and that of the assessing officer restored We have heard learned counsel for the parties and . have considered the submissions made by them Learned counsel for the respondent-Revenue submitted that the enhanced compensation that was received by the assessee was taxable in the year of receipt. In support of his submission, learned counsel placed reliance on a judgment of the Supreme Court in Commissioner of Income-tax v. Ghanshyam (HUF) [2009] 315 ITR 1 (SC). The Supreme Court in Ghanshyam (HUF)’s case (supra) had held that irrespective of the fact, whether litigation with regard to award of compensation had attained finality or not, under Section 45(5(b) of the Act, which was inserted retrospectively w.e.f. 1.4.1988, taxability of income shall be in the year of receipt. In the instant case, as noticed above, the Tribunal has rightly held that the amount received by the assessee on account of enhanced Income-tax Appeal No. 572 of 2008 5 compensation would be liable to be included in the income . chargeable to tax in the current assessment year In view of the above, the appeal is dismissed. ( ) AJAY KUMAR MITTAL JUDGE ( ) ADARSH KUMAR GOEL 27, 2010 October JUDGE * * rkmalik