https://www.taxtmi.com/caselaws?id=27076 Interest on land acquisition compensation accrues from the date of dispossession because sections 28 and 34 of the Land Acquisition Act treat it as compensation for withholding money due to the owner after possession is taken. Under section 5 of the Income-tax Act, the amount is taxable on accrual or receipt, and an enforceable right to receive the interest arises year by year from dispossession. A pending claim for enhanced compensation does not postpone that accrual or shift taxation to the year of final quantification or receipt. The interest was therefore assessable in the relevant previous years on an accrual basis. en-us Fri, 08 Jun 1984 00:00:00 +0530 Wed, 10 Feb 2010 15:49:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=27076 Interest on land acquisition compensation accrues from the date of dispossession because sections 28 and 34 of the Land Acquisition Act treat it as compensation for withholding money due to the owner after possession is taken. Under section 5 of the Income-tax Act, the amount is taxable on accrual or receipt, and an enforceable right to receive the interest arises year by year from dispossession. A pending claim for enhanced compensation does not postpone that accrual or shift taxation to the year of final quantification or receipt. The interest was therefore assessable in the relevant previous years on an accrual basis. Case-Laws Income Tax Fri, 08 Jun 1984 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=27076