https://www.taxtmi.com/caselaws?id=768953 Statutory interest paid for delayed compensation in compulsory acquisition retains the character of compensation rather than ordinary interest under the Income-tax Act. The Kerala High Court held that such amount is an accretion to the principal compensation because it compensates the landowner for deprivation of the use of money when due, and therefore is assessed as capital gains instead of income from other sources. Where the acquired land is agricultural land, the amount also falls within the exemption for such compensation. Section 56(2)(viii) does not apply to this compensatory statutory interest. en-us Fri, 11 Apr 2025 00:00:00 +0530 Wed, 16 Apr 2025 08:38:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=768953 Statutory interest paid for delayed compensation in compulsory acquisition retains the character of compensation rather than ordinary interest under the Income-tax Act. The Kerala High Court held that such amount is an accretion to the principal compensation because it compensates the landowner for deprivation of the use of money when due, and therefore is assessed as capital gains instead of income from other sources. Where the acquired land is agricultural land, the amount also falls within the exemption for such compensation. Section 56(2)(viii) does not apply to this compensatory statutory interest. Case-Laws Income Tax Fri, 11 Apr 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=768953