https://www.taxtmi.com/caselaws?id=771343 Interest on enhanced motor accident compensation awarded from the claim petition to the appellate judgment is treated as compensatory and forms part of the compensation, not as taxable income. Section 56(2)(viii) and Section 145B(1) determine when income is taxed if the receipt is otherwise income, but do not convert a non-income receipt into taxable income. Section 194A is only a TDS machinery provision and cannot decide taxability of the underlying receipt. On that basis, deduction of tax from the interest component was unwarranted and the deducted amount was directed to be released. en-us Thu, 27 Feb 2025 00:00:00 +0530 Thu, 22 May 2025 18:16:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=771343 Interest on enhanced motor accident compensation awarded from the claim petition to the appellate judgment is treated as compensatory and forms part of the compensation, not as taxable income. Section 56(2)(viii) and Section 145B(1) determine when income is taxed if the receipt is otherwise income, but do not convert a non-income receipt into taxable income. Section 194A is only a TDS machinery provision and cannot decide taxability of the underlying receipt. On that basis, deduction of tax from the interest component was unwarranted and the deducted amount was directed to be released. Case-Laws Indian Laws Thu, 27 Feb 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=771343