COMMISSIONER OF INCOME-TAX,WEST BENGAL-II, CALCUTTA vs HINDUSTAN HOUSING & LAND DEVELOPMENTTRUST LIMITED

The Supreme Court held that under the Income-tax Act, 1922, Section 4(1)(b)(i) and the Income-tax Act, 1961, Section 5(1)(b), additional compensation received by the assessee could not be deemed to have accrued during the relevant assessment year as the right to such income arises only upon final determination of the compensation amount. The Court affirmed the High Court's decision that the amount was not liable to tax in the assessment year since the right to receive payment was disputed in an ongoing appeal, thus no absolute right existed at that time.