https://www.taxtmi.com/caselaws?id=283636 Interest awarded under section 28 of the Land Acquisition Act, 1894 on enhanced compensation is treated as an accretion to the value of the acquired land and not as a separate revenue receipt taxable as income from other sources. The distinction from section 34 interest was applied: section 28 compensates for enhanced compensation, while section 34 compensates for delay in payment. For tax purposes, the section 28 component, where taxable at all, is assessable on receipt basis in the year of receipt and not by year-wise accrual or apportionment. On that basis, the additions made on account of interest on enhanced compensation were held unsustainable. en-us Thu, 04 Oct 2018 00:00:00 +0530 Fri, 04 Oct 2019 09:36:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=283636 Interest awarded under section 28 of the Land Acquisition Act, 1894 on enhanced compensation is treated as an accretion to the value of the acquired land and not as a separate revenue receipt taxable as income from other sources. The distinction from section 34 interest was applied: section 28 compensates for enhanced compensation, while section 34 compensates for delay in payment. For tax purposes, the section 28 component, where taxable at all, is assessable on receipt basis in the year of receipt and not by year-wise accrual or apportionment. On that basis, the additions made on account of interest on enhanced compensation were held unsustainable. Case-Laws Income Tax Thu, 04 Oct 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=283636