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2014 (1) TMI 1727 - HC - Income TaxInterest received on enhanced amount of compensation in respect of acquired land for delayed payment - Held that:- Source from receipt of enhanced compensation and interest received thereon was discussed in Sarti vs. Haryana State Industrial & Infrastructure Development Corporation Limited and others [2011 (5) TMI 939 - PUNJAB AND HARYANA HIGH COURT ] wherein it was observed that interest received on enhanced amount of compensation in respect of acquired land for delayed payment falls for taxation under 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 making the payment of enhanced compensation. Such payment could not par-take the character of compensation for acquisition of agricultural land and, thus, was not exempt under the Act. Once that was so, the tax at source had been rightly deducted by the payer - Decided against assessee
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