Taxability of interest on enhanced land acquisition compensation upheld under the amended income-tax framework.

Interest received under section 28 of the Land Acquisition Act on delayed payment of enhanced compensation was treated as taxable under the Income-tax Act, 1961 after the relevant amendment. The Tribunal followed binding High Court precedent holding that such receipt falls within the tax net and rejected the assessee's claim for exclusion. The addition made on this account was therefore sustained, and the appeal was dismissed.

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Issues: Whether interest received under section 28 of the Land Acquisition Act on delayed payment of enhanced compensation is taxable under the Income-tax Act, 1961.

Analysis: The issue was treated as covered by binding precedent of the High Courts, which held that such receipt falls within the scope of taxation after the amendment to the relevant provisions of the Income-tax Act, 1961. Following those decisions, the Tribunal held that the amount received as interest on enhanced compensation could not be excluded from taxability on the basis urged by the assessee.

Conclusion: The issue was decided against the assessee and in favour of the Revenue.

Final Conclusion: The addition made on account of interest under section 28 of the Land Acquisition Act was sustained and the appeal was dismissed.

Ratio Decidendi: Interest received under section 28 of the Land Acquisition Act on enhanced compensation is taxable in accordance with the Income-tax Act, 1961, where binding precedent so holds after the relevant amendment.

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