https://www.taxtmi.com/caselaws?id=205854 Enhanced compensation received on acquisition of land is taxable in the year of receipt under Section 45(5) of the Income-tax Act, 1961, even if the compensation dispute has not attained finality. The Court applied the settled position that later authoritative rulings treat such receipt as taxable on receipt, and the pending dispute does not defer taxability. It further distinguished interest under Section 28 of the Land Acquisition Act, 1894, which partakes of the character of compensation, from interest on enhanced compensation, which is taxable as income from other sources under Section 56 of the Income-tax Act, 1961. The issue was answered in favour of the Revenue. en-us Tue, 18 Jan 2011 00:00:00 +0530 Mon, 26 Sep 2011 21:22:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=205854 Enhanced compensation received on acquisition of land is taxable in the year of receipt under Section 45(5) of the Income-tax Act, 1961, even if the compensation dispute has not attained finality. The Court applied the settled position that later authoritative rulings treat such receipt as taxable on receipt, and the pending dispute does not defer taxability. It further distinguished interest under Section 28 of the Land Acquisition Act, 1894, which partakes of the character of compensation, from interest on enhanced compensation, which is taxable as income from other sources under Section 56 of the Income-tax Act, 1961. The issue was answered in favour of the Revenue. Case-Laws Income Tax Tue, 18 Jan 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=205854