TaxTMI Login
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →Just a moment...
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →
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
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether interest received on enhanced compensation under the Land Acquisition Act was wholly taxable as income from other sources, or whether only the component attributable to delayed payment was taxable.
Analysis: The receipt comprised two distinct components. Interest under section 28 of the Land Acquisition Act, 1894 was treated as an accretion to the enhanced compensation and therefore partook the character of compensation, not income. By contrast, interest attributable to delay in payment under section 34 of the Land Acquisition Act, 1894 was considered a revenue receipt and taxable in the hands of the assessee. The assessment as made had treated the entire interest as income from other sources and allowed deduction under section 57 of the Income-tax Act, 1961 on that entire amount, which was held to be legally incorrect. The matter required bifurcation between the compensatory component and the delayed-payment component, and factual verification by the Assessing Officer.
Conclusion: Only the interest component attributable to delayed payment at 15% was liable to be treated as taxable income from other sources, while the component referable to section 28 was compensatory in nature. The issue was remanded for limited verification, resulting in partial relief to the assessee.
TaxTMI 
TaxTMI 
