https://www.taxtmi.com/caselaws?id=119936 Interest on enhanced compensation under the Land Acquisition Act accrues year by year from the date of dispossession until payment, and is taxable on accrual or receipt basis as applicable under the Income-tax Act. The terms "accrue", "arise" and "is received" are not synonymous, so the interest cannot be treated as a single lump sum merely because it is received together. Where enhanced compensation is ultimately awarded, the related interest must be attributed to the relevant previous years in proportion to the period for which it became due; it is not taxable wholly in the year of receipt. en-us Fri, 15 Sep 2006 00:00:00 +0530 Sat, 14 Jul 2012 12:15:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=119936 Interest on enhanced compensation under the Land Acquisition Act accrues year by year from the date of dispossession until payment, and is taxable on accrual or receipt basis as applicable under the Income-tax Act. The terms "accrue", "arise" and "is received" are not synonymous, so the interest cannot be treated as a single lump sum merely because it is received together. Where enhanced compensation is ultimately awarded, the related interest must be attributed to the relevant previous years in proportion to the period for which it became due; it is not taxable wholly in the year of receipt. Case-Laws Income Tax Fri, 15 Sep 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=119936