https://www.taxtmi.com/caselaws?id=78611 Interest on delayed payment of enhanced land acquisition compensation was taxable on receipt basis where the assessee was not shown to be following the mercantile system of accounting. Section 145 of the Income-tax Act, as applicable after the Finance Act, 1995, permits computation only under the cash or mercantile system regularly employed by the assessee. Because the assessee received the full interest in 1996, had not earlier accrued the balance on mercantile basis, and failed to prove regular mercantile accounting, spreading over on accrual basis was rejected. The interest was treated as income from other sources and taxed in assessment year 1997-98. en-us Tue, 24 Aug 2010 00:00:00 +0530 Thu, 15 Mar 2012 16:55:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=78611 Interest on delayed payment of enhanced land acquisition compensation was taxable on receipt basis where the assessee was not shown to be following the mercantile system of accounting. Section 145 of the Income-tax Act, as applicable after the Finance Act, 1995, permits computation only under the cash or mercantile system regularly employed by the assessee. Because the assessee received the full interest in 1996, had not earlier accrued the balance on mercantile basis, and failed to prove regular mercantile accounting, spreading over on accrual basis was rejected. The interest was treated as income from other sources and taxed in assessment year 1997-98. Case-Laws Income Tax Tue, 24 Aug 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=78611