https://www.taxtmi.com/caselaws?id=269728 Interest under Section 28 of the Land Acquisition Act, 1894 on enhanced compensation is treated as revenue receipt and taxable in the year of receipt. The Court relied on the amendments made by the Finance (No. 2) Act, 2009 to Section 56(2) and Section 145A of the Income-tax Act, 1961, which deem interest on compensation or enhanced compensation as income of the receipt year. It further held that tax deduction at source is only a mode of collection and, where deducted under Section 194A, does not alter the tax charge. The deduction was therefore valid, with any refund to be pursued through income tax returns. en-us Mon, 21 Sep 2015 00:00:00 +0530 Fri, 18 Dec 2015 14:16:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=269728 Interest under Section 28 of the Land Acquisition Act, 1894 on enhanced compensation is treated as revenue receipt and taxable in the year of receipt. The Court relied on the amendments made by the Finance (No. 2) Act, 2009 to Section 56(2) and Section 145A of the Income-tax Act, 1961, which deem interest on compensation or enhanced compensation as income of the receipt year. It further held that tax deduction at source is only a mode of collection and, where deducted under Section 194A, does not alter the tax charge. The deduction was therefore valid, with any refund to be pursued through income tax returns. Case-Laws Income Tax Mon, 21 Sep 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=269728