COMMR.OF I.T.FARIDABAD vs GHANSHYAM (HUF)

The Supreme Court interpreted Section 45(5) of the Income-tax Act, 1961, holding that enhanced compensation received by the assessee is deemed income chargeable under 'Capital Gains' in the year it is received, regardless of ongoing disputes. The Court affirmed that since the amount was received under an interim order and was still under dispute, it did not accrue to the assessee for taxation purposes. The Court upheld the High Court's ruling, which followed the precedent set in Commissioner of Income-tax, West Bengal-II v. Hindustan Housing and Land Development Trust Ltd., confirming the non-taxability of the disputed amount.