https://www.taxtmi.com/caselaws?id=206235 Interest on enhanced land acquisition compensation was treated as taxable in the year of receipt. The High Court followed its earlier view that interest awarded under Section 34 of the Land Acquisition Act, 1894 partakes of the character of compensation and is taxable under Section 45(5)(b) of the Income-tax Act, 1961 when received. It further noted that, where the assessee follows the cash system of accountancy, interest on the enhanced compensation awarded under Section 28 of the Land Acquisition Act, 1894 is assessable as income from other sources under Section 56 of the Income-tax Act, 1961 in the year of receipt. en-us Thu, 09 Dec 2010 00:00:00 +0530 Wed, 19 Oct 2011 07:48:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=206235 Interest on enhanced land acquisition compensation was treated as taxable in the year of receipt. The High Court followed its earlier view that interest awarded under Section 34 of the Land Acquisition Act, 1894 partakes of the character of compensation and is taxable under Section 45(5)(b) of the Income-tax Act, 1961 when received. It further noted that, where the assessee follows the cash system of accountancy, interest on the enhanced compensation awarded under Section 28 of the Land Acquisition Act, 1894 is assessable as income from other sources under Section 56 of the Income-tax Act, 1961 in the year of receipt. Case-Laws Income Tax Thu, 09 Dec 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=206235