INCOME TAX ACT, 1961

Section 56(2)(viii)

Income from other sources - Taxability - Interest under section 28 of Land Acquisition Act -

Assessee received enhanced compensation and interest under section 28 Land Acquisition Act, 1894 on compulsory acquisition of Land and declared interest income as part of the enhanced compensation of land and claimed the same as exempt from tax on the ground that the land itself was agricultural.Held: Interest awarded under section 28 upon increased compnsation was not by way of any charge on compensation determined under section 23(1), therefore, interest under section 28 of Land Acquisition Act was a revenue receipt and therefore, taxable under section 56(2)(viii).

REFERRED :

FAVOUR : Against the assessee.

A.Y. : 2013-14

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