https://www.taxtmi.com/caselaws?id=38103 Enhanced compensation under the Land Acquisition Act was held not to accrue as taxable income until the claim was finally and judicially determined, because no present enforceable right or corresponding debt existed while the matter remained under challenge. On the same reasoning, interest linked to that compensation did not accrue year by year before final adjudication; it arose only when the principal compensation claim was conclusively fixed by the competent authority or court. The article also notes that, if the receipt is ultimately capital in nature, the relevant year of accrual would follow the year of transfer under section 45 of the Income-tax Act, 1961. 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 was held not to accrue as taxable income until the claim was finally and judicially determined, because no present enforceable right or corresponding debt existed while the matter remained under challenge. On the same reasoning, interest linked to that compensation did not accrue year by year before final adjudication; it arose only when the principal compensation claim was conclusively fixed by the competent authority or court. The article also notes that, if the receipt is ultimately capital in nature, the relevant year of accrual would follow the year of transfer under section 45 of the Income-tax Act, 1961. Case-Laws Income Tax Thu, 18 Mar 1976 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38103