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2017 (2) TMI 510 - HC - Income TaxAssessment of interest on enhanced compensation - enhanced compensation under Section 28 of the Land Acquisition Act, 1894 and interest thereon has attained finality and the amount has been paid to the assessee - nature of income - Held that:- The interest component on enhanced compensation under Section 28 of the 1894 Act is liable to be taxed under Section 56 of the 1961 Act and is not covered by Section 45(5)(c). Section 45(5)(c) of the 1961 Act does not apply to the case before us for it was introduced by an amendment w.e.f. 01.04.2004. However, the judgement squarely applies even in respect of cases under Section 45(5)(b) as well for it is expressly observed that interest on enhanced compensation is not treated as compensation. See Commissioner of Income Tax. Versus Shri Prem Singh [2010 (12) TMI 460 - PUNJAB AND HARYANA HIGH COURT ] - Decided in favour of revenue.
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