Exclusive HOLI Discounts!
Get Courses and Combos at Upto 50% OFF!
Upgrad
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

santhosh (student)     08 October 2009

Capital Gain -query

 

Hi there

A person receives enhanced compensation after the order of high  court,the govt after paying this enhanced compensation appeals to the supreme court for reducing the compensation.

Now will the enhanced compensation received by the assessee be taxable?

In Vinod K Singhania text book its given that this amount will be included in computing capital gain and after the apex court gives judgement AO can recompute the capital gain.

But in another text book written by an renowned author there is supreme court case law stating that such an amount is not taxable when the matter is pending in the supreme court.

The case law is " Commissioner of Income-tax VS. Hindustan Housing & Land Development Trust Ltd."

 

Which one is correct  ? Please Guide me !





Learning

 3 Replies

Vineet (Director)     09 October 2009

Can you provide the exact citation please.

santhosh (student)     09 October 2009

 Thanks for the reply i have facts about the case law find the attachment


Attached File : 57 hindustan hosuing.pdf downloaded: 109 times

Vineet (Director)     10 October 2009

Please refer to section 45(5) of Income Tax Act, 1961. Your querry is very well resolved wef 1-4-1988. The decision quoted by you is prior to that date.


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register