The land was acquired by the Special Land Acquisition Officer (SLAO ) \u00a0and an order was passed under section 11 of the Land Acquisition Act , 1894 , awarding compensation at Rs. 14 , 59, 531. Aggrieved by the \u00a0order\u00a0 a reference was made under Section 18 of \u00a0the Land Acquisition Act , 1894 to the Court of Civil , Judge , Senior Division , Raigad at Alibaug. The Additional judge has awarded the additional compensation\u00a0 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%\u00a0\u00a0 for the first year from the date of possession and \u00a0thereafter , 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 \u00a0\u00a0and 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 \u00a060% and indemnity Bond 40% . The appellant has received certain amount on which\u00a0 the tax was deducted at source . The appellant\u00a0 filed the return of income claiming \u00a0the \u00a0refund of tax deducted at source . \u00a0\u00a0\u00a0The 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 . \u00a0On merit the Tribunal held that \u00a0the compensation received by the appellant in pursuance of an interim order of the Bombay High Court\u00a0 as per proviso to section 45(5)( b)\u00a0 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 . \u00a0\u00a0Accordingly the appeal of the assessee is allowed\u00a0\u00a0 and the order of CIT( A) \u00a0confirming the\u00a0 order of AO taxing long term capital gain amounting to Rs.22.49,01,802\/- being compensation on acquisition of land \u00a0and the interest of Rs 44,29,98,502\/- u\/s 56(2)(viii) of the Act is set aside . \u00a0\u00a0The Tribunal also deleted the \u00a0penalty of Rs 20,10,01.733\/-u\/s 271(1)(c) of the Act . ( ITA No. 4661\/& 4662 \/Mum\/ 2024\u00a0 dt . \u00a019 -5 -2025 )( AY. 2016-17)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 45 : Capital gains \u2013 Interim order – Year of taxability of capital gains on compensation- Interest on compensation-Income from other sources – Delay of 404 days \u2013 Delay is condoned – The compensation and interest received by in pursuance of an interim order of the Bombay High Court cannot be taxed in the year of receipt \u2013 Addition is deleted \u2013 Compensation and interest can be taxed only when the final order is passed by the High Court . [ S. 45(5)(b) , 45(5)( c) ,56(2)(viii) Land Acquisition Act , 1894, S. 11, 18 ]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-54624","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-ed2","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/54624","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=54624"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/54624\/revisions"}],"predecessor-version":[{"id":54625,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/54624\/revisions\/54625"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=54624"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=54624"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=54624"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}