Cross country pipeline classification and ITC entitlement: pipelines outside factory treated as immovable, ITC disallowed under Section 17 restriction...
Interest on motor accident compensation kept in a court-ordered fixed deposit under lien, pending challenge to the award, was held not taxable in the relevant year because the assessee neither received nor had any enforceable right to the interest amount. Applying ss. 56(2)(viii) and 145B(1), only interest "received" on compensation/enhanced compensation is deemed income of the year of receipt, not on accrual or on a hypothetical basis; hence neither substantive nor protective addition could stand. Consequentially, credit of TDS reflected against such interest was directed to be allowed to the assessee. - ITAT
Interest on motor accident compensation kept in a court-ordered fixed deposit under lien, pending challenge to the award, was held not taxable in the relevant year because the assessee neither received nor had any enforceable right to the interest amount. Applying ss. 56(2)(viii) and 145B(1), only interest "received" on compensation/enhanced compensation is deemed income of the year of receipt, not on accrual or on a hypothetical basis; hence neither substantive nor protective addition could stand. Consequentially, credit of TDS reflected against such interest was directed to be allowed to the assessee. - ITAT
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