Taxability of land acquisition interest confirmed under the income-tax charging provision for such receipts.

Interest received on land acquisition compensation was treated as taxable income under the specific charging provision for interest on enhanced compensation, following the Supreme Court ruling in Bikram Singh v. Land Acquisition Collector. The receipt was held to fall within section 56(2)(viii) of the Income-tax Act, so the addition was sustained and the taxpayer's challenge failed.

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Issues: Whether interest received under section 28 of the Land Acquisition Act is chargeable to tax under section 56(2)(viii) of the Income-tax Act, 1961.

Analysis: The dispute concerned the treatment of interest received on land acquisition compensation. The appellate authority had examined the issue in detail and applied the settled legal position, relying on the Supreme Court decision in Bikram Singh v. Land Acquisition Collector. On that basis, the receipt was held to fall within the charging provision invoked by the Revenue.

Conclusion: The interest received under section 28 of the Land Acquisition Act is taxable under section 56(2)(viii) of the Income-tax Act, 1961, and the assessee's challenge fails.

Final Conclusion: The addition was sustained and the assessee's appeal was rejected.

Ratio Decidendi: Interest received in connection with land acquisition compensation is taxable when brought within the specific income-tax charging provision applicable to such receipts.

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