https://www.taxtmi.com/caselaws?id=8335 Interest on compensation for acquired land accrues when the right to receive it becomes legally enforceable, not merely when it is paid. Under section 34 of the Land Acquisition Act, the taxable event is the yearly accrual of interest after deprivation of possession and non-payment of compensation, so the amount is assessable year by year as it becomes due and recoverable. Where entitlement to compensation and consequential interest has been finally settled, later interest represents separate yearly accretions rather than a single receipt in the year of payment. The method of accounting does not change this position because tax follows legal accrual, not physical receipt. en-us Wed, 06 Jan 1971 00:00:00 +0530 Thu, 09 Apr 2009 18:45:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8335 Interest on compensation for acquired land accrues when the right to receive it becomes legally enforceable, not merely when it is paid. Under section 34 of the Land Acquisition Act, the taxable event is the yearly accrual of interest after deprivation of possession and non-payment of compensation, so the amount is assessable year by year as it becomes due and recoverable. Where entitlement to compensation and consequential interest has been finally settled, later interest represents separate yearly accretions rather than a single receipt in the year of payment. The method of accounting does not change this position because tax follows legal accrual, not physical receipt. Case-Laws Income Tax Wed, 06 Jan 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8335