Upgrad LLM

capital gain -query

student

 

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 !



 
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Director

Can you provide the exact citation please.

 
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student

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



Attached File : 57 hindustan hosuing.pdf downloaded 86 times
 
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Director

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.

 
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