https://www.taxtmi.com/caselaws?id=204786 Interest on enhanced compensation received on compulsory acquisition is treated as a separate receipt, not as deferred exempt compensation, and the tax treatment depends on its character under the Land Acquisition Act. Applying the distinction between interest under Section 28 and Section 34 and the Supreme Court ruling in Ghanshyam (HUF), the component relating to enhanced compensation is assessable independently under Section 56 of the Income-tax Act. It is taxable in the year of receipt even if proceedings for enhancement remain pending, so the receipt is not postponed until finality of the acquisition dispute. en-us Thu, 16 Dec 2010 00:00:00 +0530 Wed, 29 Jun 2011 15:11:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=204786 Interest on enhanced compensation received on compulsory acquisition is treated as a separate receipt, not as deferred exempt compensation, and the tax treatment depends on its character under the Land Acquisition Act. Applying the distinction between interest under Section 28 and Section 34 and the Supreme Court ruling in Ghanshyam (HUF), the component relating to enhanced compensation is assessable independently under Section 56 of the Income-tax Act. It is taxable in the year of receipt even if proceedings for enhancement remain pending, so the receipt is not postponed until finality of the acquisition dispute. Case-Laws Income Tax Thu, 16 Dec 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=204786