COMMISSIONER OF INCOME TAX Vs. JAI BHAGWAN

JUDGEMENT

(1.) This is revenue's appeal filed under Section 260A of the Income-tax Act, 1961 (for brevity 'the Act') challenging order dated 3-10-2008 passed by the Income-tax Appellate Tribunal, Delhi Bench 'D', New Delhi in ITA No. 2186/Delhi/2008, in respect of assessment year 2002-03. The appellant-revenue has sought to raise the following substantial questions of law for determination of this Court:

(2.) Whether in law it is still an open question that the compensation and/or enhanced compensation would be taxable only when it attained finality irrespective of the remedial provisions introduced in the Act from 1-4-2004 by insertion of Sub-clause (c) of Sub-section (5) of Section 45 read with Sub-section (16) of Section 155 and there is no more doubt that if the compensation and/or enhanced compensation is subsequently reduced, it would be assessed accordingly under these provisions?

(3.) Whether, on the facts and circumstances of the case, the ld. ITAT was right in holding that if the litigation regarding quantum of additional compensation was pending before a Court and had not attained finality, interest on enhanced compensation would not accrue and could be subjected to tax only when the issue of enhanced compensation is finally settled?