https://www.taxtmi.com/caselaws?id=268807 Interest on enhanced compensation for acquired agricultural land is treated as taxable income under the amended Sections 56(2)(viii) and 145A(b) of the Income-tax Act, which deem such interest taxable in the year of receipt. The exemption under Section 10(37) applies only to compensation for transfer of agricultural land and does not extend to the interest component. The earlier Ghanshyam line of reasoning is not controlling after the statutory amendments, and the tax treatment applies irrespective of the accounting method. Accordingly, deduction of tax at source from the interest component is valid. en-us Tue, 03 Nov 2015 00:00:00 +0530 Wed, 02 Dec 2015 02:15:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=268807 Interest on enhanced compensation for acquired agricultural land is treated as taxable income under the amended Sections 56(2)(viii) and 145A(b) of the Income-tax Act, which deem such interest taxable in the year of receipt. The exemption under Section 10(37) applies only to compensation for transfer of agricultural land and does not extend to the interest component. The earlier Ghanshyam line of reasoning is not controlling after the statutory amendments, and the tax treatment applies irrespective of the accounting method. Accordingly, deduction of tax at source from the interest component is valid. Case-Laws Income Tax Tue, 03 Nov 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=268807