https://www.taxtmi.com/caselaws?id=35994 Amounts received to compensate an assessee for being kept out of possession of agricultural land can qualify as agricultural income if they are effectively in lieu of the income that would have been derived from the land. The test is whether the receipt has its effective source in the land and is directly associated with it, rather than being only remotely connected. Applying that principle, the principal amount received under the stay order was treated as exempt agricultural income, but interest earned on the deposited amount was not, because its effective source was the deposit itself and not the land. en-us Mon, 07 Jul 1980 00:00:00 +0530 Thu, 18 Mar 2010 17:15:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=35994 Amounts received to compensate an assessee for being kept out of possession of agricultural land can qualify as agricultural income if they are effectively in lieu of the income that would have been derived from the land. The test is whether the receipt has its effective source in the land and is directly associated with it, rather than being only remotely connected. Applying that principle, the principal amount received under the stay order was treated as exempt agricultural income, but interest earned on the deposited amount was not, because its effective source was the deposit itself and not the land. Case-Laws Income Tax Mon, 07 Jul 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=35994