“Section 45(5)(b)”

Section References (mined)Section 45Section 45(5)(b)82 judgments

The decision most relied on for Section 45(5)(b) is CIT v. Hindustan Coca Cola Beverages P Ltd. (331 ITR 192), cited in 152 judgments on BharatTax.

Leading authorities on Section 45(5)(b)

CIT v. Hindustan Coca Cola Beverages P Ltd.

331 ITR 192 · 2011 · High Court

152

citing judgments

The Principal Commissioner of Income Tax cannot exercise revisional jurisdiction under Section 263 if the Assessing Officer has taken one of two possible views on a debatable issue during assessment proceedings.

Sarla Verma & Ors. v. Delhi Transport Corporation & Anr.

6 SCC 121 · 2009 · Reported

140

citing judgments

This case establishes the principles for calculating compensation in motor accident and personal injury claims, including the selection of the multiplier based on the deceased's age, assessment of loss of dependency, consideration of future prospects, and deductions for personal expenses.

19-23 of APB): UOI v. Hari Singh

302 CTR 458 · 2018 · Supreme Court

citing judgments

Additional amounts, solatium, and interest on excess compensation under the Land Acquisition Act form part of enhanced compensation under section 45(5) and are taxable in the year of receipt. If TDS is deducted, the Assessing Officer must determine the nature of the land acquired and the taxability of the compensation or enhanced compensation.

Judgments citing Section 45(5)(b)

Percival Joseph Pereira, Mumbai vs. Income Tax Officer (It)-3(3)(1), Mumbai

In the result, both the appeals by the assessee are allowed

ITA 4661/MUM/2024[2016-17]Status: DisposedITAT Mumbai19 May 2025AY 2016-17

Bench: Amit Shukla & Shri Girish Agrawal

Section 143(3)Section 271(1)(c)Section 45(5)(b)Section 56Section 56(2)(viii)

Rs.8,25,78,755/-. In the said return, assessee did not offer the additional compensation received by him in view of proviso to section 45(5)(b). However, he intimated the details of the said transaction to the concerned Assessing Officer by way of a submission dated 09.08.2016. This letter ... High Court of Bombay had stayed the operation, execution and implementation of the order of ld. Civil Court and therefore proviso to section 45(5)(b) comes into play making the amount taxable in the year in which the final order is passed. After considering the submission made

Vachaspati Sharma, Gurgaon vs. ITO Ward -4(1), Gurgaon

In the result, the appeal of the assessee is dismissed

ITA 1180/DEL/2023[2019-20]Status: DisposedITAT Delhi21 Nov 2024AY 2019-20

Bench: Sh. S. Rifaur Rahman & Sh. Sudhir Kumarassessment Year: 2019-20 Vachaspati Sharma Vs Ito Village – Hayatpur Garhi Ward-4 Harsaru, Hayatpur, Gurgaon Gurgaon Pan No.Fnqps2021R (Appellant) (Respondent) Appellants By Sh. Suraj Bhan Nain, Advocate Sh. K.L. Pahwa, Advocate Respondent By Ms. Sapna Bhatia, Cit Dr Date Of Hearing: 11/09/2024 Date Of Pronouncement: 21/11/2024 Order Sh. Sudhir Kumar, Jm :

Section 10Section 10(37)Section 143Section 143(3)Section 18Section 234BSection 234DSection 28Section 45(5)Section 56

interest under section 34. 32. The issue to be decided before us what is the meaning of the words "enhanced compensation/consideration" in section 45(5)(b) of the 1961 Act? Will it cover "interest"? These questions also bring in the concept of the year of taxability ... additional amount under Section 23(1-A) and solatium under Section 23(2) of the 1961 Act forms part of enhanced compensation under Section 45(5)(b) of the 1961 Act....." It may also be apt to quote the following part of the decision of the Supreme Court in Ghanshyam

Pallath Nafeesa, Malappuram vs. ITO, Tirur

In the result, appeal filed by the assessee allowed

ITA 118/COCH/2023[2015-16]Status: DisposedITAT Cochin03 Oct 2024AY 2015-16

Bench: Shri Waseem Ahmed & Shri Soundararajan K.Pallath Nafeesa The Income Tax Officer Poolakkodan House Tirur Athirumada, Punnathala Vs. Tirur, Malappuram 676552 [Pan: Alipn9300R] (Appellant) (Respondent)

For Appellant: Shri Shaji Paulose, CAFor Respondent: Smt. Girly Albert, Sr. D.R

Section 10(37)Section 145ASection 194ASection 197Section 28Section 34Section 56(2)(viii)Section 57

even before the insertion of Section 45(5)(c) and Section 155(16) w.e.f. 1-4-2004, the receipt of enhanced compensation under Section 45(5)(b) was taxable in the year of receipt which is only reinforced by insertion of clause (c) because the right to receive payment under

Universal Tractor Holding Llc, Usa vs. DCIT, International Taxation Circle 3(1)(1), New Delhi

In the result, the appeal of the assessee is dismissed

ITA 2216/DEL/2022[2019-20]Status: HeardITAT Delhi28 Aug 2024AY 2019-20

Bench: Dr. B. R. R. Kumar, Sh. Sudhir Kumar

For Appellant: Sh. Durgesh Shankar, AdvFor Respondent: Ms. Banita Devi Neorem, CIT-DR

Section 143(3)Section 49

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘D’, NEW DELHI Before Dr. B. R. R. Kumar, Accountant Member, Sh

Bhim Singh, Gurgaon vs. ITO Ward 1(3), Gurgaon

In the result, the appeal of the assessee in ITA No

ITA 255/DEL/2024[2019-20]Status: DisposedITAT Delhi02 Aug 2024AY 2019-20

Bench: Shri Challa Nagendra Prasad & Shri Naveen Chandra

For Appellant: Shri Vinod Arora, CAFor Respondent: Shri Amit Katoch, Sr. DR

Section 10Section 10(37)Section 28Section 34Section 56Section 56(2)(viii)Section 57Section 69ASection 80CSection 80D

also additional amount under Section 23(1A) and solatium under Section 23(2) of the 1961 Act forms part of enhanced compensation under Section 45(5)(b) of the 1961 Act”. 19. We are of the considered opinion that the decision of Ghanshyam HUF deals with the taxability of interest ... enhanced compensation under section 28 of the Land Acquisition Act under capital gains under section 45(5)(b) of the Act only. In this case, the Hon’ble Supreme Court had no occasion to deal with the issue of taxability of interest received under section 28 of LAA as ‘income

Veena Shah, Panipat vs. Pr CIT, Rohtak

The appeal stands dismissed

ITA 1222/DEL/2023[2018-19]Status: DisposedITAT Delhi28 Jun 2024AY 2018-19

Bench: SHRI VIKAS AWASTHY (Judicial Member), SHRI AVDHESH KUMAR MISHRA (Accountant Member)

Section 10(37)Section 143Section 143(3)Section 263Section 28Section 56(2)(viii)

supra) has held that interest on excess compensation under section 28 of the Land Acquisition Act forms part of enhanced compensation under section 45(5)(b) of the Act and, therefore the same is taxable as capital gains under section 45(5) of the Act and not as income from

ITO, Ward-35(7), New Delhi vs. Sumitra Devi, Delhi

In the result, the appeal of the Revenue stands dismissed and the Cross Objection of the assessee is partly allowed

ITA 906/DEL/2020[2010-11]Status: DisposedITAT Delhi28 Feb 2024AY 2010-11

Bench: Dr. Brr Kumar & Ms. Astha Chandraasstt. Year: 2010-11 & Co. No. 173/Del/2022 Asstt. Year 2010-11 Ito, Ward-35(7), Vs. Smt. Sumitra Devi, New Delhi. Plot No. 132/133, First Floor, Pocket-12, Sector-24, Rohini, Delhi-110 085. Pan Craps6145R (Appellant) (Respondent)

For Appellant: Shri Sachin Kumar, AdvocateFor Respondent: Shri Piyush Tripathi, Sr. DR

Section 147Section 148Section 151Section 45(1)Section 45(5)(b)

erred in deleting the addition of Rs. 3,21,75,000/- ignoring fact that the amount of enhanced compensation is taxable under section 45(5)(b) of the Income Tax Act, 1961 and that the enhanced compensation amount would invariably be subsequent to the date of compulsory acquisition of land ... found satisfactory and final show cause notice dated 15.11.2017 was issued asking the assessee to explain why her income be not treated under section 45(5)(b) of the Act and added to her income. Assessee filed written reply dated 04.12.2017 which the Ld. AO treated as repetition of earlier

ITO Ward - 2, Hisar vs. Hari Singh Saini, Hisar

In the result, the Revenue’s appeal stands dismissed

ITA 1539/DEL/2020[2012-13]Status: DisposedITAT Delhi20 Mar 2023AY 2012-13

For Appellant: Shri Kuldip Khera, CAFor Respondent: Ms. Indu Bala Saini, Sr. DR

Section 14SSection 155(16)Section 28Section 4Section 45(5)Section 45(5)(c)Section 56(2)(viii)

even before the insertion of Section 45(5)(c) and Section 155(16) w.e.f 1-4-2004, the receipt of enhanced compensation under Section 45(5)(b) was taxable in the year of receipt which is only reinforced by insertion of clause (c) because the right to receive payment under

Subhash Chand Dhingra, Gurgaon vs. ACIT Central Circle-3(1), Gurgaon

The appeals are dismissed

ITA 1063/DEL/2022[2017-18]Status: DisposedITAT Delhi07 Feb 2023AY 2017-18

Bench: Shri Shamim Yahya & Shri Anubhav Sharmasubhash Chand Dhingra, Vs. Acit, House No. 1/43, Shivaji Nagar, Central Circle-3(1), Gurgaon Gurgaon (Appellant) (Respondent) Pan: Aarpd8652J Satish Kumar Dhingra, Vs. Acit, House No. 1/43, Shivaji Nagar, Circle-4(1), Gurgaon Gurgaon (Appellant) (Respondent) Pan: Aanpd1971A Ashok Kumar Dhingra, Vs. Acit, House No. 1/43, Shivaji Nagar, Circle-1(1), Gurgaon Gurgaon (Appellant) (Respondent) Pan: Abupd6730B Giriraj Dhingra, Vs. Acit, House No. 1/43, Shivaji Nagar, Circle-1(1), Gurgaon Gurgaon (Appellant) (Respondent) Pan: Achpd9434E

For Appellant: Smt. Kavita Jha, AdvFor Respondent: Sh. P. Praveen Sidharth, CIT DR

Section 10(37)Section 139(4)Section 139(5)Section 143Section 143(3)Section 145ASection 263Section 56(2)(viii)Section 57

under section 23(2) and interest on excess compensation under section 28 of the Land Acquisition Act form part of enhanced compensation under section 45(5)(b) and, therefore, is subject to tax under section 45(5) in the year of receipt. No contrary view is taken by the Supreme

Ashok Kumar Dhingra, Gurgaon vs. ACIT Circle-1(1), Gurgaon

The appeals are dismissed

ITA 1061/DEL/2022[2017-18]Status: DisposedITAT Delhi07 Feb 2023AY 2017-18

For Appellant: Smt. Kavita Jha, AdvFor Respondent: Sh. P. Praveen Sidharth, CIT DR

Section 10(37)Section 139(4)Section 139(5)Section 143Section 143(3)Section 145ASection 263Section 56(2)(viii)Section 57

Satish Kumar Dhingra, Haryana vs. ACIT Circle-4(1), Gurgaon

The appeals are dismissed

ITA 1060/DEL/2022[2017-18]Status: DisposedITAT Delhi07 Feb 2023AY 2017-18

For Appellant: Smt. Kavita Jha, AdvFor Respondent: Sh. P. Praveen Sidharth, CIT DR

Section 10(37)Section 139(4)Section 139(5)Section 143Section 143(3)Section 145ASection 263Section 56(2)(viii)Section 57

Sh. Manjeet Singh, Karnal vs. ITO, Karnal

In the result, the appeals of the assessees are allowed

ITA 1391/DEL/2017[2011-12]Status: DisposedITAT Delhi25 Jan 2023AY 2011-12

Bench: Dr. B. R. R. Kumarsh. Yogesh Kumar Us

For Appellant: Sh. Aditya Srinivasan, CAFor Respondent: Sh. K. K. Mishra, Sr. DR

Section 10(37)Section 145ASection 2Section 23(1)Section 28Section 4Section 56Section 56(2)(viii)

clarified that whereas compensation given to the assessee of the land acquired would be 'income', the enhanced compensation/consideration becomes income by virtue of Section 45(5)(b) of the Income Tax Act. The question was whether it will cover “interest” and if so, what would be the year of taxability ... additional amount under Section 23 (1-A) and solatium under Section 23(2) of the 1961 Act forms part of enhanced compensation under Section 45(5)(b) of the 1961 Act.” 8. It is clear from the above that whereas interest under Section 34 is not treated as a part

Sh. Puneet Singh, Karnal vs. ACIT, Karnal

In the result, the appeals of the assessees are allowed

ITA 1389/DEL/2017[2011-12]Status: DisposedITAT Delhi25 Jan 2023AY 2011-12

Bench: Dr. B. R. R. Kumarsh. Yogesh Kumar Us

For Appellant: Sh. Aditya Srinivasan, CAFor Respondent: Sh. K. K. Mishra, Sr. DR

Section 10(37)Section 145ASection 2Section 23(1)Section 28Section 4Section 56Section 56(2)(viii)

Anil Bhagwan Advani, Mumbai vs. ITO (It) 1(1), Mumbai

In the result, appeal of the assessee is allowed

ITA 4385/MUM/2015[2011-12]Status: DisposedITAT Mumbai28 Jul 2022AY 2011-12

Bench: Shri Amit Shukla & Shri Gagan Goyal

For Appellant: Sh. Tapas MisraFor Respondent: Smt. Shailja Rai, CIT-DR

Section 154Section 251(1)Section 45(5)(b)Section 48Section 55A

Defence/Special Land Acquisition Officer pursuant to the Supreme Court order and tax the same under the head 'Capital Gain' in terms of section 45(5)(b) r.w.s. 48 of the IT Act and the balance interest paid to assessee for any delay in payment of the compensation, from the date ... taxation of compensation enhanced over the value determined for the transfer of the capital asset is squarely covered by the provisions of Section 45(5)(b) read with explanation (iii) of the said section. I find that the appellant's case in respect of enhanced compensation is covered completely

Leila Advani, Mumbai vs. ACIT - 16(2), Mumbai

In the result, appeal of the revenue is dismissed

ITA 2270/MUM/2016[2011-12]Status: DisposedITAT Mumbai18 Jul 2022AY 2011-12

For Appellant: Sh. Tapas MishraFor Respondent: Smt. Shailja Rai, CIT-DR

Section 143Section 143(2)Section 45(5)(b)Section 48Section 48(1)Section 54F

Defence Special Land Acquisition Officer pursuant to the Supreme Court order and tax the same under the head 'Capital Gain in terms of section 45(5)(b) r.w.s. 48 of the I.T Act and the balance interest paid to assessee for any delay in payment of the compensation from ... compensation (enhanced) received for abolition of Jagirs for the trees standing on Jagir lands is assessable in the year of receipt as per section 45(5)(b); 5 lakhs in the assessment year 1987-88 and Rs. 18,97,697 in 1989-90 when the compensation was received

Shri Muniyappa Narashimaiah, Bangalore vs. Income Tax Officer, Ward- 6(2)(3), Bangalore

In the result, appeal of the assesseeis treated as allowed for statistical purposes

ITA 26/BANG/2021[2013-14]Status: DisposedITAT Bangalore27 Apr 2022AY 2013-14

Bench: Shri N. V. Vasudevan & Ms. S. Padmavathyassessment Year :2013-14 Shri. Muniyappa Narashimaiah, Vs. Ito, No.120/1, Hessarghatta Main Road, Ward – 6(2)(3), Bhuvaneshwari Nagar, T Dasarahalli, Bengaluru. Bengaluru – 560 057. Pan : Abmpn 5245 R Appellant Respondent Assessee By : Shri. Mahesh Kumar, Advocate Revenue By : Shri. Priyadarshini Mishra, Addl. Cit(Dr)(Itat), Bengaluru. Date Of Hearing : 25.04.2022 Date Of Pronouncement : 27.04.2022 O R D E R Per N. V. Vasudevan: . V. Vasudevan

For Appellant: Shri. Mahesh Kumar, AdvocateFor Respondent: Shri. Priyadarshini Mishra, Addl. CIT(DR)(ITAT), Bengaluru

Section 10(37)Section 143(3)Section 263Section 54Section 54B

establish there was residential house which was compulsorily acquired by BMRCL. Besides the above, the Revenue authorities also took the view that under section 45(5)(b) of the Act, additional compensation / enhanced compensation is taxable in the year in which the same is received by an assessee. According ... arises out of original compensation received by an assessee. In our opinion, this reason given by the Revenue authorities is not acceptable because section 45(5)(b) of the Act only mentions that enhanced Page 8 of 9 compensation is chargeable to tax in the year in which the same

Perfect Thread Mills Ltd, Mumbai vs. ITO WD 8(2)(4), Mumbai

In the result, appeal filed by the assessee is allowed

ITA 349/MUM/2011[2007-08]Status: DisposedITAT Mumbai24 Feb 2022AY 2007-08

Bench: S. Rifaur Rahman, Hon'Ble & Shri Amarjit Singh, Hon'Ble&

For Appellant: Department by Shri Mehul Jain

cases. Enhanced compensation along with interest and certain other amounts was received by the assessee was assessed on receipt basis in terms of section 45(5)(b) of Income Tax Act. This was objected on the ground, that decree/order of the civil court was challenged by the State in further

Bhule Ram Sharma, Noida vs. ACIT, Circle-1, Noida

In the result, the appeal of the assessee is allowed

ITA 7085/DEL/2018[2015-16]Status: DisposedITAT Delhi25 Oct 2021AY 2015-16

Bench: Sh. Amit Shukladr. B. R. R. Kumarita No. 7085/Del/2018 : Asstt. Year : 2015-16 Bhule Ram Sharma, Vs Acit, Village-Nagla Charan Das, Po-Nepz, Circle-1, Phase-Ii, Noida, U.P.-201305 Noida (Appellant) (Respondent) Pan No. Asrps4421C Assessee By : Sh. Ved Jain, Adv. & Revenue By : Sh. Sanjay Tripathi, Sr. Dr Date Of Hearing: 21.10.2021 Date Of Pronouncement: 25.10.2021

For Appellant: Sh. Ved Jain, Adv. &For Respondent: Sh. Sanjay Tripathi, Sr. DR

Section 145ASection 194ASection 28Section 56Section 56(2)(viii)Section 57Section 96

that whereas compensation given to the assessee o f the land acquired would be 'income', the enhanced compensation/consideration becomes income by virtue of Section 45(5)(b) of the Income Tax Act. The question was whether it will cover "interest" and if so, what would be the year of taxability ... additional amount under Section 23 (1-A) and solatium under Section 23(2) of the 1961 Act forms part of enhanced compensation under Section 45(5)(b) of the 1961 Act." 8. It is clear from the above that whereas interest under Section 34 is not treated as a part

Commissioner of Income Tax Delhi vs. Ms Suman Dhamija

ITA - 21 / 2003HC Delhi08 Dec 2015

Whether the amount of enhanced compensation received by the assessee during the relevant previous year is taxable in view of the provisions of Section 45(5)(b) of the Income Tax Act, 1961? 2. Whether the Income Tax Appellate Tribunal was correct in law in holding that the decision ... from 1st April 2004, clause (c) to sub- section (5) to Section 45 was introduced in terms of which, for this purposes of Section 45 (5) (b) the cost of acquisition would be taken as nil. 41. For the purposes of Section 45 (5), in order to attract capital gains

Commissioner of Income Tax Delhi vs. Ms. Suman Dhamija

ITA - 20 / 2003HC Delhi08 Dec 2015