https://www.taxtmi.com/caselaws?id=202285 Enhanced compensation received on acquisition is examined under the capital gains provisions, with the article noting that section 45 applies only where the statutory conditions for transfer and accrued gains are met; on the facts discussed, sections 45(5)(b) and 155(7A) were said not to apply, so the enhanced compensation was not taxable for the relevant assessment year. Interest income is then distinguished by source: interest under section 28 of the Land Acquisition Act is treated as compensation, while interest under section 34 depends on the assessee's method of accounting. Where the cash system is followed, tax is attracted on receipt, and the interest received during the year is taxable accordingly. en-us Thu, 09 Sep 2010 00:00:00 +0530 Wed, 26 Dec 2012 11:42:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=202285 Enhanced compensation received on acquisition is examined under the capital gains provisions, with the article noting that section 45 applies only where the statutory conditions for transfer and accrued gains are met; on the facts discussed, sections 45(5)(b) and 155(7A) were said not to apply, so the enhanced compensation was not taxable for the relevant assessment year. Interest income is then distinguished by source: interest under section 28 of the Land Acquisition Act is treated as compensation, while interest under section 34 depends on the assessee's method of accounting. Where the cash system is followed, tax is attracted on receipt, and the interest received during the year is taxable accordingly. Case-Laws Income Tax Thu, 09 Sep 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=202285