https://www.taxtmi.com/caselaws?id=38103 Enhanced compensation under the Land Acquisition Act does not accrue for tax purposes merely because a civil court grants it while an appeal remains pending. The owner's claim remains contingent until final determination, since accrual requires a present enforceable right and a corresponding debt. Consequential interest likewise does not accrue year by year before the principal compensation claim is finally adjudicated; entitlement to interest depends on a vested right to enhanced compensation. Where the receipt is ultimately characterised as capital gains, its year of accrual follows the year of transfer under the Income-tax Act, 1961. The true nature of the receipt must be determined on the relevant facts. en-us Thu, 18 Mar 1976 00:00:00 +0530 Sat, 03 Apr 2010 12:07:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38103 Enhanced compensation under the Land Acquisition Act does not accrue for tax purposes merely because a civil court grants it while an appeal remains pending. The owner's claim remains contingent until final determination, since accrual requires a present enforceable right and a corresponding debt. Consequential interest likewise does not accrue year by year before the principal compensation claim is finally adjudicated; entitlement to interest depends on a vested right to enhanced compensation. Where the receipt is ultimately characterised as capital gains, its year of accrual follows the year of transfer under the Income-tax Act, 1961. The true nature of the receipt must be determined on the relevant facts. Case-Laws Income Tax Thu, 18 Mar 1976 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38103