https://www.taxtmi.com/caselaws?id=49369 Interest paid under section 34 of the Land Acquisition Act, 1894 for delayed payment of compensation is separate from the compensation itself. The statutory interest arises after possession is taken and represents payment for the use of money withheld, not consideration for the acquired land or for loss of title and possession. Because it is linked to deferred payment of the compensation amount, its character is a return for delay rather than a capital accretion. The amount is therefore a revenue receipt and is liable to income-tax. en-us Thu, 09 Apr 1964 00:00:00 +0530 Sat, 23 Aug 2014 12:14:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49369 Interest paid under section 34 of the Land Acquisition Act, 1894 for delayed payment of compensation is separate from the compensation itself. The statutory interest arises after possession is taken and represents payment for the use of money withheld, not consideration for the acquired land or for loss of title and possession. Because it is linked to deferred payment of the compensation amount, its character is a return for delay rather than a capital accretion. The amount is therefore a revenue receipt and is liable to income-tax. Case-Laws Income Tax Thu, 09 Apr 1964 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49369