THE STATE OF HARYANA COMMISSIONER OF INCOME TAX FARIDABAD COMMISSIONER vs CHET RAM (HUF) — C.A. No. 13053/2017

Summary: Commissioner of Income Tax, Faridabad v. Chet Ram (HUF) - CA 13053/2017 Outcome: The Supreme Court allowed the tax department's appeals, holding that respondents receiving enhanced land acquisition compensation and interest via interim High Court orders must pay income tax in the year of receipt under Section 45(5) of the Income Tax Act, 1961. The Court set aside the High Court and Income Tax Appellate Tribunal orders favoring the assessees. Key Finding: Enhanced compensation received during pending land acquisition appeals constitutes taxable income in the year received, not the year final orders are passed, as it is "deemed income" taxable on receipt basis. Parties bear own costs. Case decided September 12, 2017. This case analysis is maintained by casestatus.in based on publicly available court records.