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2014 (6) TMI 744 - AT - Income TaxAccrual of interest income on delayed payment of compensation for land acquisition – Held that:- The land belonged to 3 co-owners was acquired by Sardar Sarovr Nigam ltd. - the interest received is to be trifurcated among the three persons - Following Commissioner of Income-Tax, Madras Versus T. NK Govindarajulu Chetty [1987 (2) TMI 3 - SUPREME Court] - the interest received is to be assessed on accrual basis year to year and not to be assessed in its entity in the year of receipt - AO is directed to apportion the interest among the 3 co-owners - The interest apportioned to the appellant shall be spread over the period of delay in paying the compensation - The share of interest accruing to the appellant for the year under consideration shall be assessed to tax – revenue was not able to controvert the findings of the CIT(A) – Decided against Revenue.
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