https://www.taxtmi.com/caselaws?id=414355 Interest under section 28 of the Land Acquisition Act, 1894 on enhanced compensation is treated as an accretion to the compensation itself, not as independent interest income taxable under the head 'income from other sources' under section 56 of the Income-tax Act, 1961. The governing distinction is between section 28 interest, which follows the character of the enhanced compensation, and section 34 interest, which compensates for delay and is different in nature. Where the underlying compensation is exempt, the section 28 accretion also takes the same exempt character. en-us Mon, 25 Oct 2021 00:00:00 +0530 Wed, 03 Nov 2021 09:31:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=414355 Interest under section 28 of the Land Acquisition Act, 1894 on enhanced compensation is treated as an accretion to the compensation itself, not as independent interest income taxable under the head 'income from other sources' under section 56 of the Income-tax Act, 1961. The governing distinction is between section 28 interest, which follows the character of the enhanced compensation, and section 34 interest, which compensates for delay and is different in nature. Where the underlying compensation is exempt, the section 28 accretion also takes the same exempt character. Case-Laws Income Tax Mon, 25 Oct 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=414355