https://www.taxtmi.com/caselaws?id=211401 Interest paid for the period between taking possession of land by agreement and the passing of the award under the Land Acquisition Act, 1894 was treated as a capital receipt. The Court distinguished interest that compensates for compulsory acquisition after title has vested in the Government, which is revenue in nature, from interest paid for the loss of the right to retain possession before title passes, which partakes of compensation. As possession had been taken by agreement and the owner was deprived of the use of the compensation amount during the intervening period, the amount up to the date of the award was held to be capital and not taxable as revenue income. en-us Tue, 03 Jan 2012 00:00:00 +0530 Sat, 24 Mar 2012 13:34:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=211401 Interest paid for the period between taking possession of land by agreement and the passing of the award under the Land Acquisition Act, 1894 was treated as a capital receipt. The Court distinguished interest that compensates for compulsory acquisition after title has vested in the Government, which is revenue in nature, from interest paid for the loss of the right to retain possession before title passes, which partakes of compensation. As possession had been taken by agreement and the owner was deprived of the use of the compensation amount during the intervening period, the amount up to the date of the award was held to be capital and not taxable as revenue income. Case-Laws Income Tax Tue, 03 Jan 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=211401