https://www.taxtmi.com/caselaws?id=16052 Interest on enhanced compensation awarded in land acquisition proceedings is taxable, and the person responsible for payment may deduct tax at source under section 194A of the Income-tax Act, 1961. The fact that the interest forms part of a decree amount does not prevent deduction at source. The interest is treated as accruing year by year from the date of possession until the award or decree, so it cannot be assessed as a single lump sum. Any dispute about liability or excess deduction must be taken before the income-tax authorities; no court direction was warranted once the amount had already been remitted to the tax department. en-us Mon, 25 Jan 1999 00:00:00 +0530 Mon, 31 Aug 2009 16:48:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=16052 Interest on enhanced compensation awarded in land acquisition proceedings is taxable, and the person responsible for payment may deduct tax at source under section 194A of the Income-tax Act, 1961. The fact that the interest forms part of a decree amount does not prevent deduction at source. The interest is treated as accruing year by year from the date of possession until the award or decree, so it cannot be assessed as a single lump sum. Any dispute about liability or excess deduction must be taken before the income-tax authorities; no court direction was warranted once the amount had already been remitted to the tax department. Case-Laws Income Tax Mon, 25 Jan 1999 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=16052