https://www.taxtmi.com/caselaws?id=784611 Interest on motor accident compensation kept in a court-ordered fixed deposit under lien, pending challenge to the award, was held not taxable in the relevant year because it was not "received" by the assessee and remained in court custody. Applying ss. 56(2)(viii) and 145B(1), the ITAT held that interest on compensation is deemed income only in the previous year of receipt, and hypothetical or merely accrued interest cannot be assessed, whether substantively or protectively. Consequently, the addition of interest income was deleted, and the AO was directed to allow corresponding TDS credit. en-us Tue, 06 Jan 2026 00:00:00 +0530 Thu, 08 Jan 2026 08:22:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=784611 Interest on motor accident compensation kept in a court-ordered fixed deposit under lien, pending challenge to the award, was held not taxable in the relevant year because it was not "received" by the assessee and remained in court custody. Applying ss. 56(2)(viii) and 145B(1), the ITAT held that interest on compensation is deemed income only in the previous year of receipt, and hypothetical or merely accrued interest cannot be assessed, whether substantively or protectively. Consequently, the addition of interest income was deleted, and the AO was directed to allow corresponding TDS credit. Case-Laws Income Tax Tue, 06 Jan 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=784611