(1.) This order will dispose of ITA Nos. 150 and 343 of 2010 as common questions of law are involved.
(2.) ITA No. 150 of 2010 has been filed by the revenue under Section 260A of the Income Tax Act, 1961 (in short "the Act") against order dated 6.5.2009 passed by the Income Tax Appellate Tribunal, Delhi Bench 'A' New Delhi (hereinafter referred to as "the Tribunal") in ITA No. 2032/D/08 for the assessment year 2002-03 proposing to raise the following substantial questions of law:
(3.) The respondent-assessee received compensation in lieu of acquisition of land under the provisions of the Land Acquisition Act, 1894 which has been assessed as capital gain under Section 45 of the Act. Question for consideration before the authorities was whether additional compensation was liable to be taxed in the year in which it was received irrespective of the fact that the proceedings had not become final. The authorities decided the matter in light of the earlier judgment of the Hon'ble Supreme Court in CIT v. Hindustan Housing & Land Development Trust Ltd., 1986 161 ITR 524 and judgments of this Court based on the said view. However, in view of subsequent amendment, the Hon'ble Supreme Court in Commissioner of Income-tax v. Ghanshyam (HUF), 2009 315 ITR 1 held that enhanced compensation was liable to be taxed in the year in which the payment was received. The said judgment of the Hon'ble Supreme Court has been rendered after the judgment of the Tribunal.