https://www.taxtmi.com/caselaws?id=34152 Enhanced compensation received on compulsory acquisition is taxable under section 45(5) of the Income-tax Act in the year of receipt, even if the amount remains under appeal, because receipt is the operative taxing event and later reduction is handled by recomputation. The provision overrides the earlier approach in Hindustan Housing for this statutory scheme. The analysis further states that additional amount under section 23(1A) and solatium under section 23(2) form part of compensation, and interest under section 28 of the Land Acquisition Act is an accretion to enhanced compensation and is includible. Interest under section 34 is treated differently as delayed-payment interest. en-us Thu, 16 Jul 2009 00:00:00 +0530 Sat, 21 Feb 2026 13:07:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=34152 Enhanced compensation received on compulsory acquisition is taxable under section 45(5) of the Income-tax Act in the year of receipt, even if the amount remains under appeal, because receipt is the operative taxing event and later reduction is handled by recomputation. The provision overrides the earlier approach in Hindustan Housing for this statutory scheme. The analysis further states that additional amount under section 23(1A) and solatium under section 23(2) form part of compensation, and interest under section 28 of the Land Acquisition Act is an accretion to enhanced compensation and is includible. Interest under section 34 is treated differently as delayed-payment interest. Case-Laws Income Tax Thu, 16 Jul 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=34152