2011 (5) TMI 939

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....the petitioner. JUDGEMENT AJAY KUMAR MITTAL, J. Whether the interest payable on the amount of compensation and the enhanced compensation for the acquired land is subject to deduction of tax at source is the sole question raised in this petition. 2. The prayer of the petitioner is for issuance of a writ quashing the certificate dated 28.1.2011 of deduction of tax at source issued under ....

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....he Act in that behalf, a copy whereof is Annexure P-2 on the record. 5. We have heard learned counsel for the petitioner and have perused the record. 6. A perusal of Annexure P-2 clearly depicts that the nature of interest received by the petitioner falls under Section 194-A of the Act on account of delayed payment made by the State Government for acquisition of her land. Learned counsel for....

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.... Section 56 of the Act as "income from other sources" and is exigible to tax in the year of receipt under cash system of accountancy. It had also been observed that where the assessee is not maintaining books of accounts by adopting any specific method, it shall be treated to be cash system of accountancy. In the present case, the interest received by the petitioner was on account of delay in maki....