https://www.taxtmi.com/caselaws?id=279726 Interest received on enhanced compensation under Section 28 of the Land Acquisition Act, 1894 is treated as a taxable revenue receipt under the Income-tax Act, 1961, and is chargeable in the year of receipt. Tax deduction at source is a valid mode of collection and recovery, and tax deducted on such interest is creditable as payment on behalf of the assessee. The amendments made by the Finance (No. 2) Act, 2009, including Section 56(2)(viii) and Section 145A(b), reinforce the taxable character of interest on compensation or enhanced compensation. Accordingly, deduction at source under Section 194A was justified and no refund was due on the ground that the amount represented interest on enhanced compensation. en-us Wed, 12 Jul 2017 00:00:00 +0530 Wed, 03 Apr 2019 05:57:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=279726 Interest received on enhanced compensation under Section 28 of the Land Acquisition Act, 1894 is treated as a taxable revenue receipt under the Income-tax Act, 1961, and is chargeable in the year of receipt. Tax deduction at source is a valid mode of collection and recovery, and tax deducted on such interest is creditable as payment on behalf of the assessee. The amendments made by the Finance (No. 2) Act, 2009, including Section 56(2)(viii) and Section 145A(b), reinforce the taxable character of interest on compensation or enhanced compensation. Accordingly, deduction at source under Section 194A was justified and no refund was due on the ground that the amount represented interest on enhanced compensation. Case-Laws Income Tax Wed, 12 Jul 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=279726