TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Join Channel
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether interest under Section 28 of the Land Acquisition Act, 1894 on enhanced compensation is taxable as interest on year-to-year basis or as part of compensation in the year of receipt.
Analysis: The amount awarded under Section 28 was treated as an accretion to the enhanced value of the acquired land and not as interest in the ordinary sense. A distinction was drawn between interest under Section 28 and interest under Section 34, the latter being compensation for delay in payment. On that basis, and in view of the binding pronouncement of the Supreme Court, the receipt falls within the scheme of taxation of enhanced compensation under Section 45(5) of the Income-tax Act, 1961, with adjustment, if any, under Section 155(16) of that Act.
Conclusion: The amount under Section 28 was held to be part of compensation and taxable in the year of receipt, not on a year-to-year basis.
Final Conclusion: The appeal was disposed of by applying the Supreme Court's ruling, and the Assessing Officer was directed to proceed on the basis that the amount was compensatory in character and taxable accordingly.
Ratio Decidendi: Amounts awarded under Section 28 of the Land Acquisition Act, 1894 form part of enhanced compensation and are taxable under the capital gains receipt-based scheme in the year of receipt.
TaxTMI 
