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2011 (8) TMI 679 - HC - Income TaxInterest on Enhanced Compensation vis a vis compensation within Sections 23 and 28 - Land acquired for public purpose, compensation inclusive of interest - ITAT held interest comprised in the amount of enhanced compensation released unconditionally could not be taxed as income until the appeal was finally decided by the higher Courts - Held That:- In view of CIT vs. Ghanshyam (HUF) (2009 - TMI - 34152 - SUPREME COURT) interest is different from compensation. However, interest paid on the excess amount under Section 28 of the 1894 Act depends upon a claim by the person whose land is acquired whereas interest under Section 34 is for delay in making payment. This vital difference needs to be kept in mind in deciding this matter. Interest under Section 28 is part of the amount of compensation whereas interest under Section 34 is only for delay in making payment after the compensation amount is determined. Cort held question of law does not does not survive and arise for consideration as the amount was compensation under Section 23 & 28 and not not interest u/s 34. - Decided against the revenue.
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