https://www.taxtmi.com/caselaws?id=202285 Enhanced compensation arising from land acquired from the assessee's father was considered outside the scope of capital gains tax for the relevant assessment year because the stated conditions for applying the provisions governing enhanced compensation and consequential rectification were not met. Interest taxability depends on the accounting method regularly followed: cash accounting taxes receipts when received, while mercantile accounting taxes income on accrual. Interest awarded as compensation under the Land Acquisition Act is treated accordingly, whereas interest for delayed payment is taxable based on the applicable accounting method. On the stated facts, interest received during the relevant year was taxable because no consistent accrual-based reporting practice was established. 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 arising from land acquired from the assessee's father was considered outside the scope of capital gains tax for the relevant assessment year because the stated conditions for applying the provisions governing enhanced compensation and consequential rectification were not met. Interest taxability depends on the accounting method regularly followed: cash accounting taxes receipts when received, while mercantile accounting taxes income on accrual. Interest awarded as compensation under the Land Acquisition Act is treated accordingly, whereas interest for delayed payment is taxable based on the applicable accounting method. On the stated facts, interest received during the relevant year was taxable because no consistent accrual-based reporting practice was established. Case-Laws Income Tax Thu, 09 Sep 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=202285