Interim Land Compensation no taxable Until Final Order: ITAT Mumbai

Percival Joseph Pereira Vs ITO (ITAT Mumbai) Income Tax Appellate Tribunal (ITAT) Mumbai, in the case of Percival Joseph Pereira Vs. ITO, has clarified the taxability of enhanced compensation received by assessees through interim court orders in compulsory acquisition cases. The Tribunal’s ruling, pronounced on May 19, 2025, emphasizes the applicability of the proviso to Section 45(5)(b) of the Income Tax Act, 1961, particularly after its amendment in 2014. The core of the dispute revolved around the year in which enhanced compensation, received by the assessee subject to conditions and ...