https://www.taxtmi.com/caselaws?id=396322 Interest awarded under section 28 of the Land Acquisition Act, 1894 on enhanced compensation for compulsory acquisition of agricultural land is treated as an accretion to the value of the land and therefore forms part of enhanced compensation. The legal distinction between section 28 interest and section 34 interest is maintained: section 34 interest is delay-related, while section 28 interest is compensation-linked. On that basis, the receipt is not taxable as separate income from other sources under section 56(2)(viii), but is regarded as part of compensation and taxed, if at all, on receipt basis. The addition treating it as taxable interest income was not sustainable. en-us Fri, 19 Jun 2020 00:00:00 +0530 Tue, 30 Jun 2020 12:44:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=396322 Interest awarded under section 28 of the Land Acquisition Act, 1894 on enhanced compensation for compulsory acquisition of agricultural land is treated as an accretion to the value of the land and therefore forms part of enhanced compensation. The legal distinction between section 28 interest and section 34 interest is maintained: section 34 interest is delay-related, while section 28 interest is compensation-linked. On that basis, the receipt is not taxable as separate income from other sources under section 56(2)(viii), but is regarded as part of compensation and taxed, if at all, on receipt basis. The addition treating it as taxable interest income was not sustainable. Case-Laws Income Tax Fri, 19 Jun 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=396322