ACIT, NEW DELHI vs. M/S. JAGAT RAM TREHAN & SONS, NEW DELHI

order of court could not be treated as income accrued to the assessee.

In the case of CIT v. Bhoop Ram Dagar HUF (2008) 173 Taxman 8

(P&H) High Court, it has been held that interest on enhanced compensation cannot be taxable till the issue relating to it attains finality as the same would accrue to assessee at that time only.

Further in the case of CIT v. Karanbir Singh (2008) 169 Taxman 85

(P&H) High Court, it was held that revenue was not entitle to tax amount of interest received by the assessee till such time proceedings in reference to compensation attain finality.

In the case of Commissioner of Wealth Tax v. Girija Ammal (2006)

154 Taxman 211 (Mad.) it was held that additional compensation received could not be treated as part of compensation received for transfer of land until it was finally determined by High Court or Supreme Court and 'if the appeal of State Govt. against enhanced compensation received by assessee was allowed, assessee was bound to refund amount and, hence, same could not be assessed before reaching finality.

7.7 In view of the facts and findings of the case and the legal proposition relied upon by the assessee, the issue relating to damages and interest of Rs. 77,73,520/ - being still subjudice cannot be brought to tax in the year under consideration. The finding of the Assessing Officer in this respect that if the assessee fails in appeal by the judgement of Hon'ble High Court then the same will be deducted from its income is not justified. After considering the relevant facts of case and in view of the legal proposition cited in cases relied upon by the assessee, the ld. CIT(A) has rightly deleted the addition of Rs. 77,73,520/, which does not need any interference on my part, hence, I uphold the action of the Ld. CIT(A) on the issue in dispute and dismiss the ground no. 2 raised by the Revenue.

Order pronounced in the Open Court on 29/03/2017.