The land was acquired by the Special Land Acquisition Officer (SLAO )  and an order was passed under section 11 of the Land Acquisition Act , 1894 , awarding compensation at Rs. 14 , 59, 531. Aggrieved by the  order  a reference was made under Section 18 of  the Land Acquisition Act , 1894 to the Court of Civil , Judge , Senior Division , Raigad at Alibaug. The Additional judge has awarded the additional compensation  by revising the market value of land to Rs 500 per sqm tr. The Court also directed the SLAO to interest at the rate of 9%   for the first year from the date of possession and  thereafter , at the rate of 15% p.a. till the realisation of the amount .The State of Maharashtra did not accept any portion of the Award passed by the Civil Court and filed an appeal before the High Court . High Court by an interim order stayed the order of Civil Court   and directed the Government to deposit with the court . As per the interim order the appellant was permitted to withdraw the amount subject to Bank Guarantee of  60% and indemnity Bond 40% . The appellant has received certain amount on which  the tax was deducted at source . The appellant  filed the return of income claiming  the  refund of tax deducted at source .    The AO assessed the amount received as per interim order as capital gains . On appeal the CIT( A) affirmed the addition made by the AO and also dismissed the appeal on account of delay . On appeal the Tribunal condoned the delay of 404 days .  On merit the Tribunal held that  the compensation received by the appellant in pursuance of an interim order of the Bombay High Court  as per proviso to section 45(5)( b)  shall be deemed to be income chargeable under the head capital gains of the previous year in which the final order of the Bombay High Court is passed .   Accordingly the appeal of the assessee is allowed   and the order of CIT( A)  confirming the  order of AO taxing long term capital gain amounting to Rs.22.49,01,802/- being compensation on acquisition of land  and the interest of Rs 44,29,98,502/- u/s 56(2)(viii) of the Act is set aside .   The Tribunal also deleted the  penalty of Rs 20,10,01.733/-u/s 271(1)(c) of the Act . ( ITA No. 4661/& 4662 /Mum/ 2024  dt .  19 -5 -2025 )( AY. 2016-17)